FCA signals strong consumer protection on SPACs
By Jon Yarker 30
th April 2021 10:26 am
The FCA is launching a consultation on strengthening protection for investors using special purpose acquisition companies or SPACs.
Lord Hill’s recommendations included making it easier for SPACs to be used by companies to access capital when listing.
Now, the FCA has issued consultation paper 21/10 which proposes several measures including an alternative approach to listing SPACs.
SPAC listings are currently suspended at the point an acquisition target is identified, with the aim of preserving market integrity from disorderly trading once more information is leaked.
However, suspension risks locking investors into a SPAC for potentially months on end. This is a requirement the FCA is now considering removing.
UK Financial Conduct Authority Consults On Strengthening Investor Protections In SPACs Date
30/04/2021
The FCA has launched a consultation on proposed changes to its Listing Rules for certain special purpose acquisition companies (SPACs).
In CP21/10, the FCA proposes amending rules to allow an alternative approach for listed SPACs that are able to demonstrate the higher levels of investor protection that have developed in certain overseas jurisdictions.
Currently a SPAC listing is typically suspended at the point it identifies an acquisition target. Suspension seeks to preserve market integrity during a period when limited information on a prospective deal could result in disorderly trading in a SPAC’s shares. However, suspension results in investors being locked into a SPAC at the point a target is announced, potentially for many months prior to completion, which is undesirable for investors and issuers. The FCA are proposing that SPACs that comply with high
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Britain to use Brexit “flexibility” to make City of London more attractive
Britain will use its freedom from European Union rules to regulate markets flexibly and make the City of London even more attractive to global investors, the Financial Conduct Authority said on Tuesday.
Britain’s financial sector has been largely cut off from the bloc since full Brexit on Dec. 31, with no sign of increased direct access any time soon as the EU builds up capital market autonomy in stock and derivatives trading.
Nausicaa Delfas, who heads up the FCA’s international division, said Britain’s financial market has entered a “new phase,” but would remain open to the world and built on “robust” standards.