Article
U.S. updates outbound investment rule, adopts ...
davispolk.com
Quoted on this wiki
Every place a page here uses this source, in the order the words come in it.
Expansion of recusal requirements for U.S. persons:The COINS Act does not change the applicability of the OISP to U.S. persons’ controlled foreign entities (so that both the prohibited investment and notifiable investment regimes will still apply to controlled companies). However, it does expand the provision barring U.S. persons and entities from “knowingly directing” prohibited transactions by foreign persons (for example, as executives of non-U.S. companies or investment managers for non-U.S. investors). Under the current OISP, the “knowingly directing” rule only applies to participation in prohibited investments; the COINS Act provision, though, also applies to notifiable investments, apparently indicating that U.S. persons will also have to recuse themselves from or otherwise avoid investment decisions on behalf of foreign persons in that broader category. The details remain to be seen in implementing regulations. “Such feedback would be either confidential or published as anonymized guidance to the public.” Process for review of non-notified transactions:This is not new, as OIS has already been reaching out to parties to potentially covered transactions under existing authorities. However, the COINS Act calls attention to and formalizes that process.