Firrma could exempt foreign private equity investors from Cfius oversight

Author: John Crabb | Published: 18 Oct 2018

The US Department of the Treasury’s amendments this week to the regulations governing the Committee on Foreign Investment in the United States (Cfius) that implement certain aspects of the Foreign Investment Risk Review Modernization Act (Firrma), may signal a change in approach for firms in the US or abroad.

But as the industry waits for the new regulations to be applied, it remains uncertain exactly how much of an impact they will have and how drastically firms will need to adapt.

"Is this really going to be the dramatic change that people have been talking about or has it been oversold a little bit?" asked a chief legal officer at a private equity house in New York.  "Given that there has been a trend of scrutinising private equity structures in recent years, there was always an issue of critical technology and infrastructure being looked at, is it really that...