clydes – SPACs in the UK – the new listing rules and their potential impact on deal activity and claims trends

The Financial Conduct Authority (FCA) has published its changes to the listing rules designed to increase investor protection whilst making the UK a more attractive jurisdiction to list SPACs. They will come into force on 10 August 2021. SPACs that meet the criteria under the FCA’s new rules will be able to benefit from the disapplication of the existing general presumption that trading will be suspended when a SPAC announces its potential acquisition target. The rationale for this change is to provide protection to investors at a stage when there is still limited public information available. Additional investor safeguards will also be included in the UK’s new regime, such as ring-fencing initial capital raised, the need for prior shareholder/investor approval to any combination and redemption rights.