2018 Saw Major CFIUS Reform. But What Does the Future Hold?

The rules of the Committee on Foreign Investment in the US have become more transparent but with new requirements for foreign investors

Harry G. Broadman has been immersed in the work of the Committee on Foreign Investment in the US (CFIUS) for decades, including as a CFIUS member in the early 1990s when he served in the White House as US Assistant Trade Representative. As the entity tasked with scrutinizing—and empowered to approve or block—foreign investors’ purchase of or investment in US entities based on national security risk, CFIUS still remained relatively unknown for decades. In 2018, it took on a higher-profile role after passage of the Foreign Investment Risk Review Modernization Act (FIRRMA), which expanded the agency’s jurisdiction and imposed new requirements on foreign investors.

Broadman, a BRG managing director and chair of its Emerging Markets practice, is based in Washington, DC. He offered his perspective on the changes to CFIUS and his predictions for what lies ahead.