The Proposed SPAC Rules and Their Impact on Investment Banks
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Key takeaways:
- On March 30, 2022, the Securities and Exchange Commission proposed new rules relating to transactions involving special purpose acquisition companies, or SPACs.
- The rules, if adopted, may have far-reaching consequences for investment banks involved in SPAC transactions, including the potential imposition on some banks of underwriter liability with respect to the de-SPAC transaction registration statement.
- Investment banks should consider what modifications to their protocols and practices they might make to protect themselves in the evolving SPAC environment.