Navigating Foreign Investment and Sensitive Industries

This is an excerpt from our joint webinar with FundApps on 3 June 2026, Navigating Foreign Investment and Sensitive Industries. In the webinar we unpacked the latest developments in investment controls - from CFIUS and US outbound rules to Japan’s FEFTA regime and tightening European oversight - and explored how firms can navigate an increasingly fragmented regulatory landscape.

More about Japan CFIUS:

In the excerpt, only one of many topics we covered, we were discussing Japan’s complex FEFTA rules for foreign investment, including:

•  the 1% threshold 

•  recent changes

•  Japan’s CFIUS and proposed amendments

Proposed amendments to the Foreign Exchange and Foreign Trade Act were passed by a majority vote of the ruling party and others at the House of Councillors Finance and Financial Services Committee on the 29 May 2026.

Some changes include:

•  extending screening to certain indirect acquisitions

•  introducing further anti-circumvention rules

•  adding call-in powers for non-notifiable acquisitions posing substantial national security risk

•  formalising risk-mitigation measures

•  creating a Japanese-CFIUS-style consultation process

What this means for investors

Monitor for subordinate legislation
Certain rules are expected to be applied differently to different investors.

Consider investor status
Currently, and potentially in the proposed rules, investor status critically changes the rules and exemptions that apply

Update internal compliance systems
Adapt rules monitoring when the rules come into force, which is expected to be within one year of the Act being passed.