SEC Chairman Gary Gensler in remarks to the regulator’s Investor Advisory Committee noted that additional rules have been proposed for governing SPACs. Gensler also said he is looking “forward to further recommendations from this committee.”
Chief among the proposed new regs is a measure that would clamp down on a SPAC’s ability to issue rosy forecasts, require firms to issue more roebust disclosure and make the blank-check process operate more like a traditional IPO. Proposals could also make underwriting banks liable for the de-SPAC transaction if certain conditions are met—generally, if the underwriter does anything that might be construed as facilitating the de-SPAC transaction or any related financing transaction. Read more.
