Earlier this month, the 2021 National Security and Investment Act came into force. This new act gives special powers to the government of the United Kingdom as it permits the government to investigate and intercede in any acquisitions made by anybody, which includes investors as well as firms, that may cause harm to the security of the United Kingdom.
Every business in Wales must be aware of the enforcement of this new law, as the National Security and Investment Act 2021 changes the scenario for those Welsh companies who are associated with corporate transactions. Two separate schemes have been proposed in this new law.
The first needs compulsory warning of any “notifiable” corporate exchanges (like corporate acquisitions or speculations) which fall inside 17 sensitive fields of the economy which includes Artificial Intelligence, Civil Nuclear, Communication, Computing Hardware, Energy, Critical Suppliers to Government, Cryptographic Authentication, Transport, Defense, Suppliers to the Emergency Services, Military and Dual-Use, Quantum Technologies, Satellite and, Space Technologies, Synthetic Biology, and Data Infrastructure. Where notice is required under this first scheme, any transaction without authorization is void, and the possible recipient may face significant fines and criminal liability.
The second permit is to make any voluntary notice about any transaction if someone feels ought to be advised to the UK Government under this law. This second mode is supported by the “call-in” right, as the government of the United Kingdom does not need to give any warning before scrutinizing any transactions, if that may pose a threat to national security.
