The Financial Conduct Authority has allowed SPACs more flexibility in return for stronger consumer protections in a push to attract more of the vehicles to the UK, ShareCast reports.
SPACs currently have their listing suspended when they have identified an acquisition target to prevent disorderly trading. This locks investors into the SPAC until the deal completes, often taking many months.
The regulator said in return for not being suspended SPACs would have to let investors leave a Spac before an acquisition is completed and ring-fence money raised from public shareholders. The SPAC would also have to get shareholder approval for a proposed acquisition and be subject to a time limit if no acquisition is completed. Read more.
