Sen. John Kennedy (R-La.) introduced the Sponsor Promote and Compensation (SPAC) Act, which he said would provide greater transparency for investors involved with SPACs.
Within 120 days of its enactment, the SPAC Act would require the SEC to issue rules on enhanced disclosures for SPACs during the initial public offering stage and the pre-merger stage to make those disclosures more transparent to investors, especially main street investors. These measures would help investors make more informed decisions about a company’s shares.
“Celebrities are often the public face of SPACs, helping the companies sell shares to hardworking Americans who may not understand the risks associated with SPACs. So, it’s right and fair that SPACs should disclose how theirs sponsors get paid and how that affects the value of the shares that main street investors are holding. My bill would require this kind of transparency,” said Kennedy.
Text of the SPAC Act is available here.
