Congressional Scrutiny Adds Momentum For SPAC Oversight
Law360 (May 10, 2021, 11:47 AM EDT) -- Congress is showing interest in toughening transparency and investor protection requirements that govern special purpose acquisition companies, potentially adding pressure on regulators to increase oversight of these alternate funding vehicles that are disrupting capital markets.
Sen. John Kennedy, R-La., recently introduced a bill requiring "more explicit" disclosures of initial public offerings filed by SPACs, also called blank-check companies, regarding how much equity compensation SPAC founders receive and the dilutive effects on public investors.
The House Financial Services Committee has also scheduled a May 24 hearing examining whether more investor protections are needed for increasingly popular alternatives to traditional IPOs, focusing mainly...
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