The FCA on Tuesday published their changes to Listing Rules in an effort to attract more SPACs to the UK following their explosion in popularity in the US. The FCA have made these changes to strike a balance between attracting SPACs whilst also maintaining sufficient investor protection.
Changes include, the adoption of a redemption option allowing investors to exit a SPAC prior to the acquisition being completed alongside requiring shareholder approval for any proposed acquisition. The proposals also include a number of amendments to the original proposal aimed at bolstering investor protection including introducing an option to extend the proposed 2 year time limit by an additional six months without the need for shareholder approval where certain conditions are met.
The new rules will come into force on the 10th of August.
Following these changes, we will likely see an increase in SPAC activity in the UK. We will explore this in more detail and what it means to D&O insurers in an upcoming article – watch this SPAC(e)!
For further information see our article, ‘SPACs in the City, increasing exposure to D&O insurers’.
FCA publishes final rules to strengthen investor protections in SPACs