A SPAC, or Special Purpose Acquisition Company, is a new company established for the specific purpose of raising capital, applying for a stock exchange listing and within a short period thereafter, financing a merger or acquisition.
The FSMA is proposing to introduce minimum standards for SPACs. These minimum standards concern the structure of SPACs, information disclosure and the arrangements whereby investors may withdraw from the SPAC. The FSMA also takes a position on the extent to which SPACs are suited, and should thus be accessible, to retail investors.
Market participants are invited to submit reactions and suggestions regarding the FSMA’s proposal. The consultation will run between 10 and 31 May 2021.
Source: FSMA
