Market divided over new-look Cfius’ impact on foreign funds

Author: John Crabb | Published: 31 Aug 2018

The Committee on Foreign Investment in the United States’ (Cfius) handling of foreign investment funds has been thrown into doubt, following the recent implementation of the Foreign Investment Risk Review Modernization Act (Firrma).

One issue that the legislation may highlight is specifically whether Cfius will take additional precautions to ascertain whether investments from these foreign funds need to be reviewed under the auspices of national security or not.

"Cfius can be murky on the best day," said a US investment managerIn previous iterations of its legislation, Cfius would only look at a foreign investment if it could result in the fund holding a controlling stake in the company. Following the passage of Firrma earlier this month, however, the agency has acquired the ability to investigate minority investments – which, while not transferring a controlling stake, will still provide access to any information deemed sensitive such as artificial intelligence."If foreign investment...