Treasury Issues Final Regulations for Foreign Investments Subject to Review by the Committee on Foreign Investment in the United States (CFIUS)
On November 14, 2008, the U.S. Department of the Treasury issued its long-awaited final regulations under the Foreign Investment and National Security Act of 2007 ("FINSA") to govern reviews of foreign investments in U.S. businesses falling within the purview of the Committee on Foreign Investment in the United States ("CFIUS"). The final regulations make only minor modifications to the regulations proposed in April 2008. Like the proposed regulations, the final regulations in part codify existing CFIUS practices but also provide substantive guidance and additional requirements for voluntary notifications filed before CFIUS. This memorandum provides an overview of the more noteworthy aspects of the regulations, such as confirmation of the requirements for the passive investment exception, additional guidance as to the definition of "control," and additional information to be included in voluntary notifications, such as personal identifier information for board members and senior executives of the foreign investor.