On October 10, 2018, the U.S. Department of the Treasury issued temporary regulations as part of the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA). The temporary regulations are to protect American technology and intellectual property from foreign acquisitions.

FIRRMA authorizes pilot programs that can help implement provisions of the legislation in advance of the effective date for full implementation of FIRRMA in February 2020.  The pilot program implemented under FIRRMA allows for expanding the scope of transactions subject to review by the Committee on Foreign Investment in the United States to include “…certain non-controlling investments in U.S. businesses involved in critical technologies related to specific industries.”

The pilot program will begin on November 10, 2018.

The U.S. Department of the Treasury press release may be found here:

https://home.treasury.gov/news/press-releases/sm506