Through the National Security Act 2023 (“NSA”), the UK is introducing new registration requirements on persons carrying on activities for foreign states in the United Kingdom. This will be known as the Foreign Influence Registration Scheme (“FIRS”); it will be akin to the U.S. Foreign Agents Registration Act (“FARA”). FIRS is expected to come into force in the course of 2024.

FIRS will impose more extensive obligations on those engaging with UK government than as is currently the case under the Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Act 2014.  

FIRS will primarily be relevant for any person undertaking "political influence activities" in the UK; however, it will be applicable to a broader range of activities in respect of certain to-be-determined specified foreign powers and entities.

FIRS will have two tiers, the applicability of which will depend on the status of the particular “foreign power”: (1) the political influence tier; and (2) the specified person tier.

It is notable that “foreign power” is defined broadly and includes (i) heads of state (ii) foreign governments (iii) agencies or authorities of foreign governments and (iv) governing political parties.

Breach of certain FIRS obligations is punishable by up to 5 years imprisonment and/or a fine.

Political Influence tier

Of broadest application is the political influence tier, which requires arrangements between a person (e.g. a UK public affairs company) and a “foreign power” in which the foreign power directs:

1. The carrying out of “political influence activities” in the UK; or
2. The arranging of such activities to be carried out in the UK,

to be registered within 28 days from the day on which the arrangement was made. There are certain transitional provisions which extend this on the coming into force of the relevant provisions of the NSA.

Political influence activities are:

1. Making communications with specific categories of public officials, e.g. Ministers, MPs, civil servants, election candidates, special advisers.
2. Making public communications, except where it is clear from the communication that it is made by or at the direction of a foreign power;
3. Distributing money, goods or services to UK persons, where it is for the purpose of influencing one or more of the following:
   1. an election or referendum in the UK;
   2. a decision of a Minister (UK or devolved);
   3. the proceedings of a UK registered political party;
   4. an MP (or member of a devolved parliament/assembly).

This category is effectively intended to improve transparency of foreign power influence in UK political affairs.

Notably, these requirements are broader in scope – and consequently impose more onerous compliance burdens – than under the UK’s existing regulations applicable to lobbying, e.g. the registration requirements pursuant to the Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Act 2014, which are applicable to certain categories of engagement with Ministers and Permanent Secretaries (i.e. a narrower category of office-holder than under FIRS) conducted by consultant lobbyists.

Specified tier

In respect of all activities directed by certain foreign powers (or certain other entities) designated by the Secretary of State (“Specified Persons”), more onerous obligations apply.

Where arrangements are made for activities to be carried out in the UK, or to arrange for activities to be carried out in the UK, directed by Specified Persons, such arrangements must be notified within 10 days.

In addition, particular obligations are imposed on those holding office under or employed by Specified Persons in relation to activities they undertake in the UK, and on Specified Persons themselves.

Exemptions

There are a number of exemptions from the requirements of FIRS, which include: arrangements with the Republic of Ireland, news publishers, and lawyers carrying out legal activities.

Next steps

Companies that are likely to be impacted by the FIRS requirements should begin to think about how their activities could fall within FIRS and how they will comply with its requirements.

Authored by Aline Doussin, Andrew Eaton, and Daniel Shapland.