L

Lord Purvis of Tweed (LD)

Speaking in the House of Lords on 5 June 2025

Debate

National Security Act 2023 (Foreign Activities and Foreign Influence Registration Scheme: Exemptions for Certain Foreign Power Investment Funds, Education, Government Administration and Public Bodies) Regulations 2025

Contribution

I am grateful to the Minister. On one hand I can understand it, on the other hand, I just disagree with him, respectfully. Sovereign wealth funds are not just one thing that is obvious to see. Sovereign wealth funds can be extraordinarily broad in their scope, their legal complexity and their financial instruments, which can be spread across a number of different jurisdictions. That is why they are used by state entities. We seek to have good relationships with some, because we want them to invest in the UK, but others are used for the very reason of their complexities. I just do not understand the rationale of the Government to have a blanket exemption for any fund that is principally owned by a sovereign Government. That is notwithstanding the further dilution of the share capital that the Government are now proposing, from 25% to 100%. I do not understand the rationale for this.

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