Proposed changes to the UK Listing Rules would allow certain SPACs to avoid a listing suspension.

By Nicola Higgs and Charlotte Collins

On 30 April 2021, the FCA published a Consultation Paper (CP21/10) on changes to the UK Listing Rules to better accommodate special purpose acquisition companies (SPACs). Whilst currently there is a presumption that a listing should be suspended temporarily when a SPAC identifies a potential acquisition target, the FCA is proposing to introduce an exception if a SPAC can confirm that it meets certain specified conditions and has made certain prescribed disclosures. In such cases, the FCA would be satisfied that sufficient investor protection measures were in place so that a suspension would not be required.

The FCA hopes that by making these changes, it will provide a more flexible regime for SPACs in the UK, potentially resulting in more SPACs choosing to list there. Comments are requested by 28 May 2021.

For more detail, please see our related Client Alert.