SPACs face fresh SEC threat for bullish forecasts - Bloomberg News
Reuters
Published Mar 29, 2022 03:12PM ET
(Reuters) - The U.S. Securities and Exchange Commission (SEC) will propose limiting the legal protections that blank-check companies rely on to make bullish projections, Bloomberg News reported on Tuesday.
The regulation will be part of a broader set of rules governing special purpose acquisition companies (SPACs), set to be released on Wednesday, the report said, citing people familiar with the matter.
Under the new rule, investors can sue over inaccurate SPAC forecasts, according to the report.
Last year, Reuters reported that the securities regulator was weighing guidance to rein in growth projections made by SPACs, amid concerns that such forecasts were often wildly optimistic.
Market interest for SPACs has waned in recent months, hurt by high rates of redemptions by investors and U.S. market volatility triggered by rate hike concerns and geopolitical tensions.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.