On March 24, 2021, Canada's Minister of Innovation, Science
and Industry announced that the government
had updated its Guidelines on the National
Security Review of Investments (the
"Guidelines") for the first
time since late 2016. The Guidelines, issued under section
38 of the Investment Canada Act
("ICA"), set out the government's
approach to national security reviews of foreign-controlled inbound
investments.1 The changes, which emphasize additional
areas of potential national security concern, likely reflect the
government's recent experiences in reviewing investments in
these areas.
Notable Changes
The revised Guidelines include several notable
changes.
First, the Guidelines confirm that the government is
placing greater emphasis on the identity and
control of the foreign investor. The government
will consider who ultimately controls the investor, and the
potential for third-party influence, especially from foreign
governments. To that end, all
