SEC Adopts Rules to Enhance Protections for SPAC Investors
12 February 2024
On January 24, 2024, the U.S. Securities and Exchange Commission (SEC) adopted new rules and amendments, available here, that enhance protections for investors and create new liability risks in initial public offerings (IPOs) by special purpose acquisition companies (SPACs) and subsequent business combination transactions (de-SPAC transactions) between SPACs and one or more target companies (typically, a private operating company target). In short, the adopted rules close perceived gaps between the regulatory requirements applicable to de-SPAC transactions and those for traditional IPOs.
Clifford Chance
