New directives governing SPACs could be recommended by the U.S. Securities and Exchange Commission at its open meeting March 30, PYMNTS reports.
An agenda released by the SEC indicated that the agency will consider proposing rules that would affect SPACs, the use of projections in SPAC filings and regulations addressing the status of SPACs under the Investment Company Act of 1940.
Regulators including the SEC indicated last year that new rules were necessary to better govern SPACs. SEC Chair Gary Gensler raised concerns about the lack of investor protection in comparison to a traditional initial public offering. Investors also might not get disclosures about potential conflicts of interest embedded in SPAC mergers.
Regulators signaled their intent to propose rules governing SPACs last year. Read more.
