As part of the Minister of Innovation, Science and Industry's mandate to modernize the Investment Canada Act, the Honourable François-Philippe Champagne introduced a bill titled "Act to Amend the Investment Canada Act" or "The National Security Review of Investments Modernization Act" on December 7, 2022.
This new bill represents the most significant update of the ICA since 2009 and ensures that Canada can continue to address changing threats that can arise from foreign investment. The amendments to the Investment Canada Act include:
- New filing requirement prior to the implementation of investments in prescribed business sectors;
- Authority for the Minister to extend the national security review of investments;
- Stronger penalties for non-compliance;
- Authority for the Minister to impose conditions during a national security review;
- Authority for the Minister to accept undertakings to mitigate national security risk;
- Improved information sharing with international counterparts;
- New rules for the protection of information during the course of judicial review;
- New ministerial authority to review state-owned enterprise investment below existing thresholds for net benefit;
- Advancement of a national security review where the investor has been convicted of a corruption offence;
- Clarification that the Investment Canada Act's national security review applies to acquisition of assets;
- Clarification on the net benefit review factors to further protect intellectual property funded by the Government of Canada and the security of Canadians' personal information; and
- Improved transparency and accountability through clarifying disclosure requirements and reporting on the use of the Minister's authorities.
Bill C-34 received Royal Assent from the Governor General after conclusion of the study and debate in the Senate on March 22, 2024.Bill C-34 is not yet in force, and will come into force by GIC order.
For more information on Bill C-34's progression including meeting summaries and briefs submitted to INDU and BANC committees, please refer to the Parliament of Canada website.