Draft National Security and Investment Act 2021 (Monetary Penalties) (Turnover of a Business) Regulations 2021 Draft National Security and Investment Act 2021 (Notifiable Acquisition) (Specification of Qualifying Entities) Regulations 2021

Shailesh Vara Excerpts

Wednesday 20th October 2021 General Committees

[Paul Scully]

We have spoken to businesses to get the balance right. There are clearly complexities in these issues, and those will be determined in terms of the enforcement powers. We have decided that the figure and the impact we have calculated around that is the right balance to strike.

The notifiable acquisition regulations specify descriptions and activities of qualifying entities, the acquisition of which must be notified to the Secretary of State as a notifiable acquisition. Acquisitions in the scope of mandatory notifications that are completed without the Secretary of State’s approval will be void and therefore have no effect in law.

[Shailesh Vara (North West Cambridgeshire) (Con)]

My understanding is that section 6(2) of the National Security and Investment Act provides that

“A notifiable acquisition takes place when a person gains control…of a qualifying entity”.

What precautions, if any, are in place to ensure that people are forewarned that a gain might cause difficulties? Otherwise, is it simply that matters kick in after the acquisition rather than having a forewarning system before the acquisition?