Wednesday, December 15, 2021

SEC has laid significant groundwork for action on SPACs in 2022

By Lene Powell, J.D. and Mark S. Nelson, J.D.

SPACs are riding high after a record-smashing year. But SPACs have also seen turbulence, with significant SEC enforcement actions, new accounting guidance that caused hundreds of SPACs to issue financial restatements, and remarks by SEC Chair Gary Gensler that SPACs might not be treating investors fairly. Disclosures, marketing practices, and gatekeeper obligations are seen as areas of concern.

Wolters Kluwer Senior Legal Analysts Lene Powell and Mark Nelson review regulatory, legislative, and enforcement developments, including an in-depth look at SEC comment dialogues about certain SPACs that later became embroiled in litigation. Looking ahead to 2022, the report gives a preview of likely SEC proposed rules and potential staff guidance that will shape the space in the year to come.

Read the report here: SPAC's wild ride sets stage for SEC smackdown in 2022