Switzerland has begun consultations on foreign investment screening legislation.

The legislation concerns the examination of foreign direct investments in Swiss companies, including in particular investments related to foreign governments. The new legislation aims to prevent threats to public order and security from foreign investors acquiring Swiss companies. Possible threats are expected in particular from investors with connections to foreign governments. Therefore, acquisitions of Swiss companies by foreign state-owned companies or investors with connections to foreign governments must be approved in all sectors. In addition, the new rules will define in which critical areas all acquisitions by foreign investors, public or private, must be authorized. Small businesses should be exempted from the vetting process by setting a minimum threshold.