A potential post-Brexit game-changer for London SPAC listings
20 May 2021
A potential post-Brexit game-changer for London SPAC listings
Mooted rule changes to facilitate SPACs seek to give the City a boost while avoiding a race to the bottom, explains Marcus Young
Shutterstock In the corporate world, one of the buzzwords of the past year has been SPACs – short for special purpose acquisition vehicles. In a nutshell, SPACs are publicly traded companies formed for the purpose of effecting an acquisition of one or more businesses. The SPAC structure has been around for decades; but exploded in popularity in the US during the Covid-19 pandemic as their advantages – primarily speed and increased deal certainty – made them the structure of choice in volatile markets.
Recent UK and EU regulatory developments of interest to financial institutions and markets.
Contents:
UK Money Markets Code updated by BoE
UK Listing Review: government response
UK EMIR: trade association letter on use of EEA UCITS as collateral
MiFID: European Commission adopts Delegated Regulation correcting MiFID Delegated Regulation (EU) 2017/565
EMIR and SFTR: ESMA reports on quality of data published
LIBOR transition: FMSB case studies for conduct risk in back book transition
Recognised Auction Platforms (Amendment and Miscellaneous Provisions) Regulations 2021
The Recognised Auction Platforms (Amendment and Miscellaneous Provisions) Regulations 2021 (SI 2021/494) have been published, together with an explanatory memorandum.
The Regulations, made under section 8 of the European Union (Withdrawal) Act 2018, amend primary and secondary legislation, and parts of retained EU law, to address deficiencies arising from the withdrawal of the UK from the EU. They amend UK fina
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Recent regulatory developments of interest to most financial institutions, including updates from the UK government, PRA, FCA, JMLG and the European Commission.
Contents
UK FinTech and financial services plans
LC&F compensation scheme and complaints to FCA
Lessons from Greensill Capital: Treasury Committee inquiry
Diversity: BoE launches Meeting Varied People initiative
PRA authorisations: updates on rule waivers and modifications and CRR and Solvency II permissions
UK Investment Firms Prudential Regime: FCA second consultation CP21/7
FCA transformation programme: update to HM Treasury
FCA appoints sustainability and technology directors
FCA regulated fees and levies for 2021/22: CP21/8
Ambitious plans to boost UK fintech and financial services set out by Chancellor
Ambitious new plans to help fintechs scale up and ensure the UK remains at the cutting edge of digitalising finance were announced by the Chancellor today (19 April 2021).
From:
new FCA ‘scale box’ and Centre for Finance, Innovation and Technology to boost growth
UK to lead digitisation of finance with central bank digital currency taskforce and support for new technologies and infrastructures
additional plans for capital markets reform to enhance open and dynamic financial centre
Speaking at Fintech Week, the Chancellor Rishi Sunak set out proposals to enhance the UK’s competitive advantage in fintech, from regulatory support and reforms to help firms grow to a new taskforce to lead the UK’s work on a central bank digital currency.
Listing Review, led by
Sunak stated:
“Our vision is for a more open, greener, and more technologically advanced financial services sector. The UK is already known for being at the forefront of innovation, but we need to go further. The steps I’ve outlined today, to boost growing Fintechs, push the boundaries of digital finance and make our financial markets more efficient, will propel us forward. And if we can capture the extraordinary potential of technology, we’ll cement the UK’s position as the world’s pre-eminent financial centre.”
Prior to Brexit, the UK was widely viewed as the top global Fintech hub. Yet the UK’s separation from continental Europe has raised concern that its prominence in the financial services sector may be challenged.