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ARTICLE · 17 JULY 2009

Draft Investment Canada Regulations Released: Details On National Security Regime And New Review Threshold

On July 11, 2009, Industry Canada released draft regulations (the Draft Regulations) that will implement certain amendments to the Investment Canada Act (ICA) introduced with the passage of Bill C-10 in March of this year.

CanadaAntitrust/Competition Law

On July 11, 2009, Industry Canada released draft regulations (the Draft Regulations) that will implement certain amendments to the Investment Canada Act (ICA) introduced with the passage of Bill C-10 in March of this year. The Draft Regulations provide prescribed information necessary to implement amendments to the ICA raising the monetary threshold for the review of investments and establishing a process for national security reviews under the ICA, in addition to setting out new information requirements for ICA filings. As there is a 30-day comment period, the Draft Regulations could come into effect as early as mid-August.

New investment review threshold

Under the ICA, the Industry Minister is required to approve transactions that meet certain monetary thresholds on the basis that they are of "net benefit to Canada". Pursuant to the recent Bill C-10 amendments, the new WTO review threshold for direct acquisitions1 of Canadian businesses (not engaged in

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