City watchdog considers easing suspension rule for SPACs

London, England

FCA proposes changing how SPACs can list

The Financial Conduct Authority (FCA) is proposing to amend the current rule that trading in a listed Special Purpose Acquisition Company (SPAC) should be suspended at the point where it identifies a company to acquire.

Currently a SPAC listing is typically suspended at the point it identifies an acquisition target. Suspension seeks to preserve market integrity during a period when limited information on a prospective deal could result in disorderly trading in a SPAC’s shares.