Clifford Chance

Proposed new UK national security and investment regime – implications for loans and related collateral

3 October 2018

Under the proposed national security and investment regime announced by BEIS in its July 2018 White Paper, loans are capable of being notifiable investments and of being called in by the Government for national security screening if they give rise to or may give rise to national security risks. Although the White Paper makes it clear that, "the overwhelming majority of loans raise no national security concerns", it also makes the point that the Government must be able to intervene in cases where the loan itself or the underlying collateral are used as vehicles through which national security may be put at risk. This briefing note summarises how the Government intends to bring certain loan transactions under the national security screening regime and explores some of the issues arising out of this proposal.

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