Dowden publishes updated guidance on national security

Deputy prime minister Oliver Dowden has published updated guidance on the use of powers under the National Security and Investment Act (2021).

The guidance is intended to provide further clarity for institutions, businesses, and their advisers while protecting national security.

The updates include a new ‘section 3 statement’ that sets out how the deputy prime minister expects to exercise powers under the NSI Act to call-in certain acquisitions for scrutiny.

Updates to the statement include guidance on trigger events, including the circumstances in which certain acquisitions could be considered under the NSI Act and on the targets of acquisitions, including how the government may consider technology transfer risks when reviewing asset acquisitions.

It also includes updates on acquirers, including where the government may see risk from UK acquirers or acquirers that have previously been cleared through the NSI system and on how decisions are made, including improved examples of how the Government assesses target risk, acquirer risk and control risk.

Deputy prime minister, Oliver Dowden, said: "We’re committed to protecting the UK’s national security while making sure we remain the best place in the world to invest. Today I’m publishing more guidance for businesses to give them a better understanding of the National Security and Investment Act (2021), fulfilling my commitment to use our national security powers in a precise and proportionate way. By being transparent with businesses, we’re creating a predictable foundation for future investment, which will help deliver on our plan to grow the economy."