Insurers, brokers and buyers will need to get to grips with the exposures presented by SPACs and the coverage issues they present, Clyde & Co. report.
As of October 2021, SPACs had raised $138 billion in IPOs in the US since the start of the year.
As it looks to bolster London’s competitiveness post-Brexit, the FCA moved for a piece of the action. In August, it brought in changes to the listing rules designed to increase investor protection whilst making the UK a more attractive jurisdiction to list SPACs. In November, London announced its first SPAC following the rule change with the news that venture capital group Hambro Perks is seeking to raise £150 million to fund an acquisition vehicle through listing on the LSE. This is likely to be the tip of the iceberg and we expect a flurry of SPAC listings in the UK in the coming year.
Investors will need to tread carefully. Read more.
