Modest Steps To Reform Canada’s Foreign Investment Review Process

On March 30 of this year, in response to a question about whether the Canadian government would permit a takeover of Blackberry maker Research In Motion, Canadian Finance Minister Flaherty commented that shareholders of Research In Motion were the "masters of their own destiny". This comment was widely reported as signalling the Canadian Government's openness to a foreign takeover of the Canadian icon and was good news for foreign investors.

On Friday, April 27, the Government turned to placating critics of the process for foreign investment review. Through its Jobs, Growth and Long‐term Prosperity Act, the Government is proposing amendments to the Investment Canada Act (the ICA) that would enhance transparency and facilitate payment of fines in the event a court found a foreign investor had failed to comply with the statute.