Last year we wrote about the UK's national security and investment proposal, which was awaiting approval at the end of 2020. A few months into the new year, the bill received the Royal Assent, making it the 'biggest shake-up of the UK's investment screening system if 20 years. ”
The NSI Act is now scheduled to enter into force on 4 January 2022. Companies should, however, be aware of the requirements of the Act now as it has a retroactive effect, where the government can“ call in ”transactions that have been closed since  to strengthen the government's ability to investigate and intervene in mergers, acquisitions and other transactions that raise national security problems. authority and regulator, which opens the door for further D&O exposures. For example, the law prescribes a mandatory notification system for certain transactions in sensitive sectors of the economy. If a company does not apply for a permit, the transaction will be invalid and the company may be subject to penalties or penalties. Furthermore, the Foreign Minister will have the broad power to "call in" and investigate transactions that the government reasonably suspects may give rise to national security problems.
D&O policies may respond to investigations and enforcement actions as required by law. As we approach the start date, companies should ensure that they understand the requirements of the law and that they have broad D&O coverage for the investigations and enforcement measures that may result.