FCA to consult on protections for investors in SPACs
The UK Financial Conduct Authority (FCA) today confirms that it will be consulting shortly on amendments to the Listing Rules and related guidance to strengthen protections for investors in Special Purpose Acquisition Companies (SPACs).
The consultation will consider the structural features and enhanced disclosure, including a minimum market capitalisation and a redemption option for investors, required to provide appropriate investor protection.
The regulator says its proposals will help to ensure that SPACs operate within a framework of high regulatory standards and oversight. Where such protections are in place, the FCA considers that the existing presumption of suspension of the listing for such companies at the point of announcement of an acquisition target is no longer required and it therefore intends to consult on this basis, aligning this element of the rules more closely with other major jurisdictions.
“We intend for the consultation to be open for a 4-week period and will welcome views from the full range of stakeholders. Subject to that process, we would aim to make the new rules and/or guidance by early summer”, the FCA said.