Christopher Caparelli discusses the implications of recent FIRRMA changes

New York Counsel Christopher Caparelli has told subscriber-only PaRR-Global that there are likely many Canadian companies that do not qualify for expected investor status under the recently announced Foreign Investment Risk Review Management Act (FIRRMA) regulations.

The article discusses confusion over the new FIRRMA regulations which have altered the requirements for an individual to become an expected investor. It also highlights Canada, Australia and the U.K. as initial excepted foreign states. These countries were placed on a “white list” as a result of meeting certain security criteria for CFIUS (Committee on Foreign Investment in the United States).

While being from a white list country does not automatically qualify an individual for expected status, Chris noted Canada’s placement on the list “tilted the scale” for Canadian investors.

Chris also said New Zealand “is the most obvious” next candidate to be added to the white list as it is the only member of the Five Eyes Intelligence Oversight and Review Council (a national security partnership between Australia, Canada, New Zealand, the U.K. and the U.S.) which is not currently included on the list.

You can read more of Torys’ insights on Foreign Investment and National Security Reviews and Competition and Foreign Investment on the relevant practice page.