Explanatory note

These Regulations implement Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019 establishing a framework for the screening of foreign direct investments into the European Union^f1 (“the FDI Regulation”) to the extent that it has not already been implemented. The FDI Regulation creates a cooperation mechanism within the European Union for the exchange of information and raising of concerns around foreign direct investment.

Regulation 2 makes a modification to the Enterprise Act 2002 (c. 40)^f2 in order to allow the Competition and Markets Authority to exercise the powers contained in section 109 of that Act to collect information to provide to a member State or the European Commission in response to a request made under the FDI Regulation.

Regulation 3 makes a further modification to the Enterprise Act 2002 to allow either the Competition and Markets Authority or the Secretary of State to disclose information to a member State or the European Commission for the purposes of Articles 6(2), 7(1) or 8(2) of the FDI Regulation, which permit member States to provide comments on foreign direct investments in other member States.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen. An Explanatory Memorandum is published alongside this instrument on www.legislation.gov.uk.