Analysis

UK eases listing rules for SPACs

, City A.M.

The Financial Conduct Authority said on Tuesday SPACs would need to raise £100m from a float, instead of the £200m initially proposed.

The new rules are designed to stimulate more listing activity on UK financial markets by reducing risks associated with investing in SPACs under existing FCA regulations. As part of the changes, the FCA is pressing ahead with easing rules that suspends trading in SPACs once the vehicle identifies an acquisition target.

However, SPACs will need to implement stronger investor protections to benefit from the lighter touch regulatory regime. In addition, alongside offering a redemption option allowing investors to redeem their stake prior to an acquisition completing, SPACs will also need to ensure money raised from a float is ring-fenced.

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