Wall Street's watchdog on Wednesday unveiled a draft new rule to enhance blank-check or special purpose acquisition company (SPAC) investor disclosures and to strip them of legal protection critics argue has allowed the shell companies to issue overly optimistic earnings projections, reported Financial Times.
What happened: The U.S. Securities and Exchange Commission (SEC) move is part of a broader crackdown on SPACs after a frenzy of deals in 2020 and early 2021 sparked concerns that some investors are getting a raw deal.
