We previously noted that SEC Chair Gary Gensler suggested the SEC would adopt new rules governing SPACs because, in his view, SPACs are very similar to initial public offerings but lack protections available to traditional IPO investors. And now, the SEC has taken concrete steps to treat “like cases alike” by announcing proposed rules and amendments governing SPACs explicitly designed to treat SPACs more like IPOs. Our corporate colleagues have created a helpful summary of the proposed rules and amendments.
Please continue to follow The Capital Commitment for further updates on SPACs and developments in the other Top Ten Regulatory Risks for Private Funds in 2022.