March 5, 2020
Stroock Special Bulletin
By: Chris Griner, Shannon Reaves, Gregory Jaeger, Christopher R. Brewster, Erin Bruce Iacobucci
CFIUS has published its proposed rule on filing fees. As you may know, the Foreign Investment Risk Review Modernization Act (FIRRMA) was passed in 2018 authorizing CFIUS to collect filing fees for CFIUS filings provided that such fees may not exceed an amount equal to the lesser of one percent of the value of the transaction, or $300,000, adjusted annually for inflation.
In summary, the proposed rule (which can be read at the link here) adopts the following fee structure:
The proposed rule applies to transactions for which a full filing is submitted to CFIUS, including controlling transactions as well as transactions subject to new CFIUS jurisdiction over real estate and non-controlling investments. CFIUS has not proposed a filing fee if the parties submit a short form declaration instead of a full filing. However, the fee would be assessed for full filings requested by CFIUS at the conclusion of a declaration process and full filings submitted by the parties in lieu of a mandatory declaration.
Comments to the proposed rule are due 30 days after publication in the Federal Register, which is expected to occur on March 9, 2020. Expected deadline is April 8, 2020. We will follow up with any further analysis as relevant. Please let us know if you have any questions or comments or if you are interested in submitting comments to the proposed regulation.
__________________________________________
For more information:
Tatiana O. Sullivan
This article is for general information purposes only. It is not intended as legal advice, and you should not consider it as such.
March 5, 2020
Stroock Special Bulletin
By: Chris Griner, Shannon Reaves, Gregory Jaeger, Christopher R. Brewster, Erin Bruce Iacobucci
CFIUS has published its proposed rule on filing fees. As you may know, the Foreign Investment Risk Review Modernization Act (FIRRMA) was passed in 2018 authorizing CFIUS to collect filing fees for CFIUS filings provided that such fees may not exceed an amount equal to the lesser of one percent of the value of the transaction, or $300,000, adjusted annually for inflation.
In summary, the proposed rule (which can be read at the link here) adopts the following fee structure:
The proposed rule applies to transactions for which a full filing is submitted to CFIUS, including controlling transactions as well as transactions subject to new CFIUS jurisdiction over real estate and non-controlling investments. CFIUS has not proposed a filing fee if the parties submit a short form declaration instead of a full filing. However, the fee would be assessed for full filings requested by CFIUS at the conclusion of a declaration process and full filings submitted by the parties in lieu of a mandatory declaration.
Comments to the proposed rule are due 30 days after publication in the Federal Register, which is expected to occur on March 9, 2020. Expected deadline is April 8, 2020. We will follow up with any further analysis as relevant. Please let us know if you have any questions or comments or if you are interested in submitting comments to the proposed regulation.
__________________________________________
For more information:
Tatiana O. Sullivan
This article is for general information purposes only. It is not intended as legal advice, and you should not consider it as such.