Tougher SPAC Disclosure Rules Endorsed by SEC Advisory Group
(Bloomberg) — A group of executives and academics that advises the U.S. Securities and Exchange Commission wants better SPAC disclosures — the latest sign that tougher rules are coming for booming blank-check companies.
The advisory group recommended Thursday that the SEC conduct and publish an analysis of the SPAC industry and “more intensively” regulate listings by requiring:
- Increased enforcement of disclosure rules for SPAC sponsors’ expertise, contributions and conflicts of interest.
- Plain-English disclosures on the financial incentives for various participants.
- Clear descriptions of the SPAC process and time lines with details of rules for how shareholders can vote for a deal.
- More information on the target and opportunity search process, as well as related risks.
- More information about the due diligence the sponsor will agree to related to accounting practices.