National Security And Investment Act

National Security And Investment Act



The National Security and Investment Act (NSI Act) is a piece of legislation introduced in the UK in 2021. Its main purpose is to scrutinize and potentially intervene in certain business transactions to safeguard the country’s national security.

Here’s a breakdown of the key aspects of the NSI Act:

  • Focus: It primarily targets acquisitions (takeovers) of companies or assets that could pose a national security risk.
  • Powers: The UK government has the authority to:
    • Review certain acquisitions: These are acquisitions that meet specific criteria set out in the Act and could potentially threaten national security.
    • Impose remedies: The government can take steps like blocking the deal, requiring changes, or forcing the sale of assets if national security concerns are identified.
  • Notification:
    • Mandatory notification: Certain acquisitions, particularly those involving sensitive industries, require mandatory notification to the government for approval before completion.
    • Voluntary notification: Businesses can also choose to voluntarily notify the government about acquisitions even if not mandatory.
  • Benefits: The Act aims to achieve a balance:
    • Protecting national security: By scrutinizing deals that could give access to sensitive technologies or infrastructure.
    • Maintaining an open economy: Encouraging foreign investment while ensuring safeguards are in place.

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