Foreign direct investment CFIUS review
CFIUS review of foreign direct investment in financial and capital markets has tightened considerably since the Committee on Foreign Investment in the United States expanded its jurisdiction under FIRRMA, with particular scrutiny on acquisitions involving data-rich financial infrastructure, payment systems, and broker-dealers with access to nonpublic market data. The U.S. Department of the Treasury, which chairs CFIUS, and the U.S. Securities and Exchange Commission have both issued guidance touching foreign ownership thresholds and required disclosures for covered transactions in this sector. Compliance teams at firms with cross-border ownership structures are actively auditing TID U.S. business designations and mandatory filing triggers before transactions close.
Watch
- FIRRMA mandatory declaration threshold: does your transaction hit the 25% ownership trigger?
- Treasury CFIUS staff requests for data-access agreements in fintech acquisitions
- SEC Rule 17a-3 records: foreign acquirer access to customer data now a CFIUS factor
- Non-notified transaction pilot program: retroactive CFIUS review of completed deals
- APAC sovereign wealth fund investments in U.S. broker-dealers drawing increased CFIUS referrals
Recent material activity in Financial & Capital Markets
Active monitoring in place across Financial & Capital Markets. Material developments related to foreign direct investment cfius review will appear here as they are published.