The rules, originally proposed in March 2022, realign disclosures, marketing practices and other obligations in de-SPAC transactions more closely with traditional IPOs and add increased risk and uncertainty for market participants. The Final Rules require increased disclosure and include a specific focus on sponsor and sponsor-affiliate conflicts of interest, compensation, dilution and the fairness of the transaction to unaffiliated SPAC stockholders.
Source: SEC Adopts Long-Anticipated Rules for SPACs: Considerations for Market Participants and SEC Enforcement Objectives in the New Regulatory Environment