FAQs on the Foreign Investment Risk Review Modernization Act (FIRRMA) and the CFIUS Pilot Program

Investment funds face new challenges under the regulations now governing procedures of the Committee on Foreign Investment in the United States (CFIUS) with respect to transactions involving the investment by a foreign or foreign-controlled person in a US business dealing with one or more "critical technologies." Even where such transactions do not provide the foreign or foreign-controlled investor with control over such a US business, the investment fund may have to file a "declaration" with CFIUS at least 45 days before the transaction's planned closing—or face penalties up to the value of the transaction.

The linked Frequently Asked Questions provide guidance on identifying which transactions trigger a filing requirement, how to determine the optimal form of such a filing, and what to expect when CFIUS reviews the filing. Failing to understand the details of these procedures can expose an investment fund to significant risk.