Compliance Issues

The Foreign Acquisition and Takeovers Act (FATA) provides legislative backing for ensuring compliance with the policy. The powers include the ability to:

• unwind (by requiring the parties to sell shares or assets) transactions that have gone ahead, without prior foreign investment approval having been obtained, where that purchase is inconsistent with policy;
• prosecute persons and companies who fail to obtain prior approval;
• prosecute persons and companies who fail to comply with an order to sell shares or assets; and
• prosecute persons and companies who fail to comply with conditions attached to any approval given under the foreign investment legislation.

There are also general powers that make it an offence to provide false or misleading information, or to enter into any schemes for the purpose of avoiding the provisions of the FATA.

Monitoring of compliance with foreign investment decisions continues to be a significant activity. Close attention is given to the application of policy and/or the fulfilment of conditions attached to decisions.

In examining proposals, the applicant's compliance with any conditions relating to past proposals is taken into account. Instances of lack of compliance with conditions may result in further proposals being rejected.