Following the release of the Hill Report at the start of last month, the FCA has announced that it is going to open a consultation into changing the Listing Rules and connected guidance with a view to encouraging the listing of Special Purpose Acquisition Vehicles (SPACs).
The consultation will focus on establishing a framework within which the current rules imposing a presumption that the shares of a SPAC will be suspended from listing when it announces that it has identified a target will no longer apply. To ensure investors are still protected, the FCA is considering imposing enhanced disclosure and structural requirements such as a minimum market capitalisation and a redemption option. Overall the intention is to align the UK’s rules more closely with other major jurisdictions.
The FCA clearly intends to move fast to introduce new rules, and is aiming to do so by the early summer.
It’s good to see the FCA beginning to implement the Hill Report’s recommendations so quickly following its release, and hopefully further consultations on other recommendations such as reform of the prospectus regime will begin shortly.