The Government has recently passed the latest set of promised changes to the Overseas Investment Act.
These changes continue the overhaul of the Overseas Investment Act 2005 that began in 2018 with the inclusion of residential land as part of the overseas investment regime.
The recent changes replace the emergency notification provisions introduced under urgency in 2020 in response to the Covid-19 pandemic. The changes also streamline aspects of the OIO application process by removing some "lower risk" transactions and by simplifying investor requirements including the "investor test" and benefits tests.
One significant change is the introduction of
The Overseas Investment Office (OIO) is also taking an increasingly proactive role in monitoring overseas investment and determining whether consent has been obtained where it is required by law. Several high profile examples of this enforcement action have been recently reported in the media and the penalties imposed include fines (in some cases amounting to several million dollars) and orders that properties or assets be sold.
Understanding whether a proposed transaction needs consent under the Overseas Investment Act is complex and requires expert advice. If you are considering buying or selling sensitive assets that may fall within the ambit of the
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Ms
Level 3, BNZ Centre
8011
© Mondaq Ltd, 2021 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com, source