The SEC plan to conduct an open meeting to discuss proposed SPAC rules tomorrow, Jan. 24, at 10 a.m. The meeting will be webcast on the commission’s site: www.sec.gov.
The commission is expected to consider the adoption of new rules and amendments to enhance disclosures and provide additional investor protections in initial public offerings by SPACs and in subsequent business combination transactions between SPACs and target companies. The SEC also intends to address investor protection concerns more broadly with respect to shell companies.
A key issue that remains unresolved is whether SPACs are subject to the rules of the Investment Company Act of 1940. Another involves the SEC proposal to extend liability for a SPAC target’s financial projections to the SPAC’s underwriter. Read more.
