Investment Canada Update: National Security Review Regulations Promulgated

New thresholds, information requirements still pending

The National Security Review of Investments Regulations, establishing the process for national security reviews under the Investment Canada Act (ICA), came into force on September 17, 2009. While the new ability of the Canadian government to screen foreign investment on the basis of national security reflects similar legislation elsewhere (e.g., the so-called Exon-Florio Act in the United States, pursuant to which many investments in the United States are reviewed by the Committee on Foreign Investment in the United States, or CFIUS), the procedure and time-lines are quite different.

The National Security Review Regulations remain largely as they were in the draft published in July. As before, a notice of potential national security review must be issued within 45 days of either the relevant Minister being notified of the transaction or the filing of an application for review. That said, the range