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The US securities regulator is considering new guidance to rein in earnings growth projections made by listed blank-cheque companies, and clarify when they qualify for certain legal protections, according to sources.
The previously unreported measures being weighed by staff at the Securities and Exchange Commission (SEC) would escalate its crackdown on the deal frenzy in special purpose acquisition companies, or SPACs, which it worries is putting investors at risk.
The SPAC market had already started to lose steam after the SEC earlier this month suggested warrants issued by SPACs should be accounted for as liabilities instead of equity instruments, and the potential new guidance could compound that slowdown.
Exclusive: U S watchdog mulls guidance to curb SPAC projections, liability shield - sources
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Exclusive: U.S. watchdog mulls guidance to curb SPAC projections, liability shield - sources
04/27/2021 | 04:53pm EDT
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WASHINGTON (Reuters) - The U.S. securities regulator is considering new guidance to rein in growth projections made by listed blank-check companies, and clarify when they qualify for certain legal protections, according to three people with knowledge of the discussions.
The previously unreported measures being weighed by staff at the Securities and Exchange Commission (SEC) would escalate its crackdown on the deal frenzy in special purpose acquisition companies, or SPACs, which it worries is putting investors at risk.
BusinessEXCLUSIVE U.S. watchdog mulls guidance to curb SPAC projections, liability shield -sources
Anirban SenJoshua FranklinChris Prentice
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File photo: The seal of the U.S. Securities and Exchange Commission hangs on the wall at SEC headquarters in Washington, June 24, 2011. REUTERS/Jonathan Ernst
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The U.S. securities regulator is considering new guidance to rein in growth projections made by listed blank-check companies, and clarify when they qualify for certain legal protections, according to three people with knowledge of the discussions.
The previously unreported measures being weighed by staff at the Securities and Exchange Commission (SEC) would escalate its crackdown on the deal frenzy in special purpose acquisition companies, or SPACs, which it worries is putting investors at risk.
Exclusive: U.S. watchdog mulls guidance to curb SPAC projections, liability shield - sources
By Anirban Sen, Chris Prentice and Joshua Franklin
Reuters
WASHINGTON (Reuters) - The U.S. securities regulator is considering new guidance to rein in growth projections made by listed blank-check companies, and clarify when they qualify for certain legal protections, according to three people with knowledge of the discussions.
The previously unreported measures being weighed by staff at the Securities and Exchange Commission (SEC) would escalate its crackdown on the deal frenzy in special purpose acquisition companies, or SPACs, which it worries is putting investors at risk.
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