2026 FDI and National Security Review

its formal response, confirming a series of updates to the mandatory notification regime. Key changes include: y (i) the addition of water companies as a new mandatory notification sector; y (ii) the creation of standalone categories for semiconductors and critical minerals, separated from the advanced materials sector; y (iii) the narrowing of the artificial intelligence sector definition to exclude “off-the-shelf” AI systems used for standard business tasks; and y (iv) minor amendments to the communications, critical suppliers to government, data infrastructure and energy sector definitions. ^ The government has also made clear its intention to remove the notification requirement for certain internal reorganizations and the appointment of liquidators, special administrators and official receivers. The government intends to lay secondary legislation before Parliament later in 2026 to implement these updates. Until such changes come into force, there is no change to the existing regime, and businesses should continue to apply the existing sector definitions when assessing mandatory notification obligations.

United Kingdom

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