New Guidelines To Help Foreign Investors Navigate National Security Rules Under The Investment Canada Act

On December 19, 2016, the federal government released new guidelines on national security reviews under the Investment Canada Act (ICA). The guidelines are part of a new transparency initiative intended to encourage foreign investment by providing investors more information about a) the types of transactions that may require a national security review, and b) the factors considered by the government when assessing national security risk. Below we summarize the highlights from the guidelines and provide additional updates on the ICA.

BACKGROUND

Under the ICA, the government can review any investment by a non-Canadian in Canada on national security grounds. Under that process, the government has a 45-day window to commence a review from the date that it receives a complete application for review or notification filing (or from closing if no filing is required).