U.S. financial industry groups are pushing to water down a draft Securities and Exchange Commission rule aimed at reining-in SPACs, arguing it could kill the industry, Reuters reports.
The American Securities Association, the SPAC Association and the CFA Institute are among groups warning that the SEC’s proposed March rule would create too much liability for parties involved in SPAC deals, and as such goes further than traditional initial public offering and M&A rules.
“The agency should protect investors, but don’t kill industry,” said Kurt Schacht, Head of Advocacy at professional investor group the CFA Institute, adding his organization has urged the SEC in a comment letter and in meetings not to regulate SPACs out of business. Read more.
