Exclusive: U.S. watchdog weighs guidance aimed at curbing SPAC projections, liability shield – sources

FILE PHOTO: The U.S. Securities and Exchange Commission logo adorns an office door at the SEC headquarters in Washington, June 24, 2011. REUTERS/Jonathan Ernst

WASHINGTON (Reuters) – The U.S. securities regulator is considering new guidance to rein-in growth projections made by listed blank-check companies, and clarify when they qualify for certain legal protections, according to three people with knowledge of the discussions.

The measures being weighed by staff at the Securities and Exchange Commission (SEC) would escalate its crackdown on the frenzy in special purpose acquisition companies, or SPAC, deals which it worries is putting investors at risk.

Source: Read Full Article