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On August 2, 2022, amendments to the National Security Review of Investments Regulations will come into force, creating a voluntary filing mechanism for investors who do not currently have a filing obligation under the Investment Canada Act (the “Act”). These amendments will also extend the initial national security review period from 45 days to five years for all investments by non-Canadians who choose not to make a filing.

The federal government first proposed these amendments in the Canada Gazette on February 12, 2022. The amendments as posted in the Canadian Gazette on June 3, 2022 are unchanged from the February proposal, aside from the coming into force date.

Continue Reading Canada to Permit Voluntary Filings Under National Security Provisions of Its Investment Canada Act

On February 12, 2022, the federal government proposed, in the Canada Gazette, amendments to the National Security Review of Investments Regulations (the “Regulations”). The Regulations set out the timelines of the national security review process under the Investment Canada Act (the “Act”). If ratified, the proposed amendments would create a voluntary filing mechanism for investors that do not currently have a filing obligation under the Act, and would extend the initial national security review period from 45 days to 5 years for all investments by non-Canadians that do not make a filing. Investors who choose to submit a voluntary filing will, within 45 days from the certification date of their filing, know whether the Government of Canada intends to challenge their investment. The proposed amendments will benefit businesses contemplating an investment in Canada by creating an option to achieve regulatory certainty pre-implementation.

Continue Reading Canada Proposes to Permit Voluntary Filings under National Security Provisions of its Investment Canada Act

On February 2nd, 2022, the Director of Investments issued his annual report on the administration of the Investment Canada Act (“ICA”) for the fiscal year commencing April 1, 2020 and ending March 31, 2021. The Annual Report provides insight on key trends relating to foreign investment and national security reviews in Canada.

During the period covered by the Annual Report, a total of 826 filings were certified under the ICA, representing a 20% decrease from the 1,032 filings made in the previous year. Most notably, the number of applications for review (required in the case of high-value foreign acquisitions) dropped by 67% over the prior period.

Continue Reading Investment Canada Act: 2020/21 Annual Report