SEC regulators have issued a new statement underlining requirements and restrictions on the booming special purpose acquisition company industry.
In a March 31 statement from the Division of Corporate Finance, staff said that SPACs are subject to shell company regulations, have to abide by Exchange Act books and records, as well as internal control rules and – if the SPAC is listed on a national exchange – the “combined company must satisfy quantitative and qualitative initial listing standards.”
Blank-check companies have been having a bit of a cultural moment, with money and celebrities flocking to create new ones. But Democrats on the Commission are leery of the mania. This is at least the second staff warning on SPACs’ compliance obligations since the beginning of the year.
Read the latest staff statement below.
This article first appeared in affiliate publication Regulatory Compliance Watch