Friday March 5 2021

News Source: Global Disclosures

Focus: Sensitive Sectors

Type: General

Country: UK




The UK Government has published responses from the consultation on mandatory notification in specific sectors under the National Security and Investment Bill.

The National Security and Investment Bill provides the Government with updated powers to scrutinise and intervene in investment to protect national security, as well as to provide businesses and investors with the certainty and transparency they need to do business in the UK. Once the regime is in place, the Government will have powers to comprehensively scrutinise and, if necessary, intervene in qualifying acquisitions of control over qualifying entities or assets across the economy if they give rise to national security risks.

In addition to a non-sector specific voluntary notification option and the power to scrutinise qualifying acquisitions that have not been notified, the Bill makes provision for a mandatory notification and pre-approval requirement for those sectors of the economy where it is considered national security issues are particularly likely to be an issue.

The responses from the consultation have been used to refine the definitions to provide further clarity to allow parties to self-assess whether they need to notify the Secretary of State when they are contemplating a relevant acquisition of control.

In addition to a non-sector specific voluntary notification option and the power to scrutinise qualifying acquisitions that have not been notified, the Bill makes provision for a mandatory notification and pre-approval requirement for those sectors of the economy where it is considered national security issues are particularly likely to be an issue.

The consultation set out the 17 sectors which are most likely to give rise to national security risks. Those included:

  • Advanced Materials
  • Advanced Robotics
  • Artificial Intelligence
  • Civil Nuclear
  • Communications
  • Computing Hardware
  • Critical Suppliers to Government
  • Critical Suppliers to the Emergency Services
  • Cryptographic Authentication
  • Data Infrastructure
  • Defence
  • Energy
  • Military and Dual-Use
  • Quantum Technologies
  • Satellite and Space Technologies
  • Synthetic Biology (formerly known as Engineering Biology. This sector has been renamed in response to the consultation responses)
  • Transport

Click on the above link for further information.