Senior Communications Manager
Richard Sofield Comments on Proposed Rules to Expand CFIUS Scrutiny of Foreign Investments
Richard C. Sofield, partner in Wiley Rein’s National Security Practice, was quoted by Corporate Counsel in a September 17 article about rules proposed by the U.S. Treasury Department to implement the Foreign Investment Risk Review Modernization Act (FIRRMA) – a 2018 law that expands the power and scope of the Committee on Foreign Investment in the United States (CFIUS).
According to the article, the proposed rules would broaden the jurisdiction of CFIUS – an interagency committee that reviews foreign investments in U.S. businesses that raise national security concerns – to include non-controlling investments in more industries and additional real estate transactions.
“U.S. companies need to be aware of their business activities that are covered by these new rules in anticipation of receipt of any future investment from foreign investors,” Mr. Sofield said. “For foreign investors in the U.S., they need to be aware not only of the business activities of their U.S. targets but of where the U.S. businesses in which they are investing are located, because the U.S. government continues to demonstrate increasing interest in scrutinizing international transactions in the interest of national security.”
The article can be found here (subscription required).