What piece of legislation serves as the origin for the Committee on Foreign Investment in the United States cfius )?
CFIUS was created in 1988 by the Exon-Florio Amendment to the Defense Production Act of 1950. CFIUS’ authorizing statute was amended by the Foreign Investment and National Security Act of 2007 (FINSA).
What triggers cfius review?
Major Changes Under the New Regulations. Before FIRRMA, CFIUS reviews were only triggered when an acquisition resulted in foreign “control” of a U.S. business that might pose a threat to U.S. national security. … FIRRMA expanded CFIUS jurisdiction in two key ways.
Who are the members of cfius?
The committee consists of nine members, including the Secretary of the Treasury, who serves as chair, the Secretaries of State, Defense, Homeland Security, Commerce, and Energy; the Attorney General; the United States Trade Representative; and the Director of the Office of Science and Technology Policy.
What does cfius mean?
Committee on Foreign Investment in the United States
What is Firrma?
The Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) expands the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS) to address growing national security concerns over foreign exploitation of certain investment structures which traditionally have fallen outside of CFIUS …
Is cfius voluntary?
The CFIUS regulations describe a voluntary process through which economic or financial activities that are considered “covered transactions” are notified to the Committee for approval and/or clearance with conditions.
What can happen to a US company when there is foreign ownership control or influence foci )?
U.S. companies determined to be under FOCI are not eligible for an FCL unless security measures are put in place to mitigate the effect of the foreign ownership, control, or influence. … Finally, if a company is unable or unwilling to mitigate the FOCI, then the existing FCL will be terminated.
Can cfius unwind a transaction?
CFIUS may review “covered transactions” between a US business and foreign person on behalf of the President of the US and either clears a transaction, imposes conditions on the transaction, or recommends to the President to block or unwind a transaction.
What is a cfius covered transaction?
CFIUS is empowered to conduct national security reviews of “covered transactions,” which regulations define as a proposed or pending “transaction” with any “foreign person” which could result in “control” of a “US Business” by a foreign person.
How do you pronounce cfius?
If you’re curious about how to pronounce the acronym, it’s siff-ee-yus. You can hear it pronounced in this video. CFIUS is a government panel whose members are tasked with reviewing business and real estate transactions that involve foreign investments made in US firms.