HomeInsightsGovernment publishes Guidance on the National Security and Investment Act 2021 (NSI Act)

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The Government has published guidance to help businesses understand their legal duties under the NSI Act.

From 4 January 2022, the Government will be able to scrutinise and intervene in certain acquisitions made by anyone, including businesses and investors, that could harm the UK’s national security. The Government will be able to impose certain conditions on an acquisition or, if necessary, unwind or block it, although the Government says that it expects to do this rarely and the vast majority of deals will be able to proceed without delay. Businesses and investors are encouraged to get ready for the changes.  The guidance aims to help businesses and investors to:

  • assess whether the Government must be notified of an acquisition; mandatory notification will apply across 17 sensitive areas of the economy (see item above); and
  • understand what to expect when they submit a notification form and go through the NSI notification and assessment process; this includes information on what parties can expect while their acquisition is being considered, such as requests for further information and when to expect final decisions on clearance.

The guidance covers:

  • an overview of the NSI Act;
  • how the NSI Act could affect people or acquisitions outside the UK;
  • how the NSI Act works with other regulatory requirements; and
  • information for the higher education and research sectors.

To access the guidance, click here.