Regulator’s SPAC rules set to limit projections

Companies marketing SPAC mergers under the new rules would no longer have the same legal protections they were afforded in the past. — Bloomberg

NEW YORK: At the height of the special purpose acquisition companies (SPACs) boom, liberated startups capitalised on the ability to tout lofty goals about the years ahead without much of a risk of legal fallout.

Now, the US Securities and Exchange Commission’s (SEC) new rules tightening SPACs’ disclosure requirements are set to clamp down on such forecasts when they come into force as soon as later this year.