Proposed New Rule Expanding CFIUS Enforcement Authority: Broader Information Requests and Subpoena Power, Costly CMPs
Recording of a 90-minute CLE video webinar with Q&A
This CLE webinar will take an in-depth look at the recently proposed new rule that significantly expands the Committee on Foreign Investment in the United States' (CFIUS or the committee) enforcement authority and discuss the potential impact on counsel and clients. The panel will examine under what circumstances the proposed rule would allow CFIUS to make broader information requests and from whom the information may be requested. The panel will also examine the greater subpoena power CFIUS would have under the new rule, the significant increase in potential maximum CMPs (from $250,000 to $5 million), and under what new circumstances CMPs could be imposed.
Outline
- Introduction: overview of CFIUS authority
- Proposed new rule
- Purpose
- Broadened authority to request information related to non-notified transactions
- Mandatory responses for parties to the transaction
- Expanded third-party subpoena power
- New timeframe to respond to CFIUS proposed or revised mitigation terms
- Increased maximum CMPs and when they may be imposed
- Impact on practitioners and clients
- Preparing for compliance
- Practitioner takeaways
Benefits
The panel will review these and other important considerations:
- How does the proposed rule expand the type of information that may be requested by CFIUS and who may be targeted by such requests?
- How does the proposed rule grant CFIUS greater subpoena power over third parties?
- What is the purpose behind the three-business-day timeline to respond to proposed mitigation terms? How may this affect parties' responses?
- What may be the impact of the increased maximum CMPs?
- How may counsel and their clients begin to prepare for compliance?
Faculty
Christian C. Davis
Partner
Akin Gump Strauss Hauer & Feld
Mr. Davis’ practice focuses on U.S. law and policy affecting international trade and business. He advises clients... | Read More
Mr. Davis’ practice focuses on U.S. law and policy affecting international trade and business. He advises clients on foreign investment, export controls, sanctions, anticorruption, and customs laws. Mr. Davis’ practice focuses on representing clients in the merger, acquisition and divestiture process before the CFIUS and on accounting for associated risks. He also advises clients in negotiating and implementing CFIUS mitigation agreements, developing and administering international trade compliance programs .and conducting internal investigations.
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Katherine P. Padgett
Counsel
Akin Gump Strauss Hauer & Feld
Ms. Padgett’s practice focuses on a variety of international trade matters, including CFIUS reviews, export... | Read More
Ms. Padgett’s practice focuses on a variety of international trade matters, including CFIUS reviews, export controls, economic sanctions, national security and litigation strategy in international investment and arbitration. Prior to joining the firm, Ms. Padgett successfully served for nine years in the Office of the Legal Adviser (L) at the U.S. Department of State, including as the department’s lead CFIUS lawyer and principal lawyer on international investment matters. Additionally, she represented the State Department in interagency policy-making processes and worked closely with senior officials at the NSC, USTR, the departments of Justice, Defense, Treasury, Commerce and Homeland Security, and other federal agencies. Ms. Padgett was instrumental in advising State Department principals on CFIUS national security reviews of transactions, mitigation agreements, litigation strategy and congressional inquiries. She advised policy clients, including officials in the State Department’s Bureau of Political-Military Affairs, on compliance issues under the Arms Export Control Act and the International Traffic in Arms Regulations (ITAR), including in connection with foreign military sales and export licenses for direct commercial sales.
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