Financial Conduct Authority
FCA consults on strengthening investor protections in SPACs
The FCA has launched a consultation on proposed changes to its Listing Rules for certain special purpose acquisition companies (SPACs).
In CP21/10, the FCA proposes amending rules to allow an alternative approach for listed SPACs that are able to demonstrate the higher levels of investor protection that have developed in certain overseas jurisdictions.
Currently a SPAC listing is typically suspended at the point it identifies an acquisition target. Suspension seeks to preserve market integrity during a period when limited information on a prospective deal could result in disorderly trading in a SPAC’s shares. However, suspension results in investors being locked into a SPAC at the point a target is announced, potentially for many months prior to completion, which is undesirable for investors and issuers. The FCA are proposing that SPACs that comply with higher levels of investor p
UK Financial Conduct Authority Consults On Strengthening Investor Protections In SPACs Date
30/04/2021
The FCA has launched a consultation on proposed changes to its Listing Rules for certain special purpose acquisition companies (SPACs).
In CP21/10, the FCA proposes amending rules to allow an alternative approach for listed SPACs that are able to demonstrate the higher levels of investor protection that have developed in certain overseas jurisdictions.
Currently a SPAC listing is typically suspended at the point it identifies an acquisition target. Suspension seeks to preserve market integrity during a period when limited information on a prospective deal could result in disorderly trading in a SPAC’s shares. However, suspension results in investors being locked into a SPAC at the point a target is announced, potentially for many months prior to completion, which is undesirable for investors and issuers. The FCA are proposing that SPACs that comply with high
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The government has this week announced how it intends to take forward the recommendations made in March 2021 by the UK Listing Review (the Review). The Review recommended significant changes to both the UK listing regime and the UK prospectus regime. Click
here for our overview of the Review.
The government announcement notes that the FCA has committed to acting quickly in relation to proposals for changes to the listing regime and will publish a consultation by the summer. There will be a specific consultation on SPACs before that.
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