Fresh UK SPAC regime comes into force today

The City watchdog’s new regime overseeing special purpose acquisition companies, or SPACs, in the UK comes into force today.

Under the new rules implemented by the Financial Conduct Authority, investors will be able to dispose of holdings in a SPAC before an acquisition is completed.

Previously, trading in SPACs was suspended as soon as the vehicle identified a target company.

The rule changes are designed to make it less costly for investors to acquire holdings in SPACs listed in the UK.

Pascal Rapallino, group investment structuring leader at IQ-EQ, said: “The updated Listing Rules for SPACs will make the UK a significantly more competitive hub for SPACs.”

“Investors have more freedom under the new rules and are allowed to exit before an acquisition is complete, instead of being locked in as soon as a target was announced.”