Objective Scope of Application: Protected Interests and Covered Risks
FPS clauses protect investments as defined in the applicable treaty. By contrast, the customary FPS standard protects a wide array of rights and interests of aliens. The notion of ‘acquired values’ facilitates the description of such broad object of protection. The customary FPS standard covers only specific categories of risk, which are ascertainable by their source. The essence of FPS pertains to the reaction of the host state towards a risk that does not originate in its own conduct. The heart of the standard is thus the protection of aliens against injuries caused by private individuals and other third parties, including other states and international organizations. In addition, FPS refers to environmental risks and collateral damages inflicted in the course of security operations, such as counterinsurgency maneuvers.