Foreign Direct Investments: Guidance on the CMA’s powers and procedures
Update (17.9.20): The CMA has withdrawn its consultation on the draft guidance setting out its powers and procedures in relation to cooperation mechanisms under the Regulation (EU) 2019/452 establishing a framework for the screening of foreign direct investments into the European Union (the FDI Regulation). We are no longer inviting responses to the consultation.
This consultation is currently paused and we are not inviting responses at this time.
We are working with the Department for Business, Energy and Industrial Strategy to understand the status of the draft Enterprise Act 2002 (EU Foreign Direct Investment) (Modifications) Regulations 2020 which were laid on 8 June 2020. Approval of that statutory instrument is subject to the affirmative procedure in Parliament.
A further update will be provided in due course.
The FDI Regulation creates a cooperation mechanism within the European Union for the exchange of information in relation to Foreign Direct Investments (FDIs) that are likely to affect security or public order of the EU Member States.
In accordance with the terms of the UK’s Withdrawal Agreement with the European Union, effect is being given to the requirements of the FDI Regulation in the UK. In some circumstances, the CMA may be required to gather and share information on FDIs planned or completed in the UK with EU Member States and/or the European Commission. Temporary modifications have been made to the Enterprise Act 2002 (the EA02) to allow the CMA to use its powers under the EA02 for these purposes.
These requirements will fall away when the Transition Period ends on 31 December 2020.
This consultation seeks the views of interested parties on the draft guidance in respect of the CMA’s powers to gather and to share information in response to requests that may be received, between 11 October 2020 and the end of the Transition Period, from EU Member States and/or the European Commission under Article 7(5) of the FDI Regulation, and on the CMA’s powers to enforce information notices issued under section 109 of the EA02 for the purpose of responding to such requests.
Following this consultation, the final guidance once adopted will remain in force until the end of the Transition Period, after which time, the majority of the guidance falls away. After the end of the Transition Period, the CMA will no longer gather and/or share information for the purposes of the FDI Regulation.