The UK’s National Security and Investment Bill: implications for loan financings and related collateral

The UK’s new National Security and Investment Bill will create a new standalone screening regime allowing the government to review acquisitions of “control” of legal entities and assets and to prohibit such acquisitions or impose remedies on them if it identifies national security concerns. The new regime is expected to enter force in Summer/Autumn 2021. The government’s draft Statement of Policy Intent accompanying the Bill confirms that “although loans are not exempt from scrutiny the overwhelming majority of these are expected to pose no national security concerns including within the core areas. In the rare circumstances where they do pose concerns the Secretary of State generally only expects to intervene when an actual acquisition of control will take place (e.g. a lender seizing collateral)”. This In Practice article provides a broad summary of the main features of the new national security screening regime and...