Understanding the Impact

While many international investors have focused on the impact of the Foreign Investment in Real Property Tax Act (FIRPTA) law since it was enacted in 1980, the Committee on Foreign Investment in the US (CFIUS, stablished by executive order in 1975) may be more of a concern today. Established to review national security of foreign investments, it is chaired by the US Treasury and includes the Defense, State, and Commerce departments, among others. Recently, the Department of Homeland Security became a member of the committee as well.

In 2006, Notifications and Investigations more than doubled, and by the end of 2018, they had doubled again. In 2018, the Foreign Investment Risk Review Modernization Act (FIRRMA) was signed, leading to a significant increase in the focus and enforcement of CFIUS. Although the total number of notifications was only 229 in that year, there is concern that the number might now be rising.

Therefore, in order to better understand the impact of CFIUS on AFIRE membership, this survey is designed to find out what members are experiencing.

Results will be presented at AFIRE's Focus on CFIUS virtual event on Tuesday, December 1, 2020, 10:00 AM – 11:00 AM EST.

12 questions/3 minutes
 
Questions? Contact Ben van Loon, Communications Director (bvanloon@afire.org).

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* 1. Do you represent (or are you) a US or non-US investor?

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* 2. If you are a non-US investor, in what country is your company based?

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* 3. Have you or your counsel raised the issue of CFIUS for any of your US investments?

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* 4. Have you decided not to pursue a deal or been unable to close a transaction because of CFIUS?

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* 5. Which asset types do you think have a higher possibility of being subject to CFIUS review?
(Select all that apply)

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* 6. Have you invested in assets that have a high probability of CFIUS review?

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* 7. Do you plan to invest in assets with a high probability for CFIUS review?

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* 8. As CFIUS only applies to non-US investors, do you think non-US investors have a disadvantaged competitive position against US investors?

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* 9. Does CIFIUS reduce your investment choices?

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* 10. Which country do you think accounted for the most CFIUS reviews in 2019?

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* 11. Do you have specialists in-house that specialize in CFIUS issues for filings and review?

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* 12. As real estate investments are usually long-term and illiquid, how important is it to have a legal and regulatory framework that is transparent, predictable, and rarely retroactively applied to deals previously transacted?

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* 13. (Let us know below if you any other thoughts or comments you would like to share regarding CFIUS and its current or future impact on cross-border investment:)

0 of 13 answered
 

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