Over recent decades, cross-border investments have gained increasing importance worldwide. Such investments are a key factor in economic development and the international integration of companies. At the same time, in certain constellations they may raise issues relating to public order and security, in particular in connection with security-relevant activities or where a company provides a service that is indispensable to the economy and cannot be replaced within a reasonable period of time.
In this context, in 2020 Parliament instructed the Federal Council, through the adoption of motion 18.3021 Rieder 'Protection of the Swiss economy through investment controls', to establish a legal framework for the screening of selected foreign investments. On 15 December 2023, the Federal Council submitted to Parliament the dispatch on the Investment Screening Act (ISA).
Parliament adopted the Investment Screening Act on 19 December 2025. The Act aims to prevent the acquisition of a Swiss company by a foreign investor from threatening or endangering public order or security in Switzerland. To this end, certain acquisitions are subject to prior approval. The Act applies to Swiss companies operating in especially critical sectors when they are acquired by foreign state-controlled investors.
The Investment Screening Act is currently expected to enter into force in 2027.
