Industry Committee Expands Scope Of National Security Powers And Other ICA Updates

The House of Commons Standing Committee on Industry and Technology has completed its study of Bill C-34 (the "Bill") – the most consequential set of amendments to the Investment Canada Act since the introduction of the national security review provisions more than a decade ago. The Bill is expected to become law this fall.

As described in our December 2022 bulletin, once passed, the Bill will confer the Government of Canada additional national security review powers over inbound investments. Specifically, it will require pre-closing filing requirements for "red-list" investments in sensitive sectors, even where there is no change in control.¹ Other changes include conferring the Minister of Innovation, Science and Industry the authority to impose interim conditions during a national security review, allowing the Minister to accept undertakings from investors during that process and enhancing the penalties for non-compliance with the ICA.