SPACWATER. British regulators are scrambling to join the special-purpose acquisition company boom. The UK Financial Conduct Authority on Friday outlined possible changes in rules governing blank-cheque vehicles under the guise of “strengthening investor protections”. It’s also an attempt to keep up. So far this year more than 300 newly listed entities have raised $96 billion for yet-to-be-determined deals, exceeding the total for the whole of 2020, Refinitiv data shows. The vast majority are in the United States. London is a SPAC backwater because most vehicles are required to suspend their shares when they identify a target. That prevents investors who don’t like the deal from selling. The FCA’s solution is to lift the suspension requirement for SPACs that raise at least 200 million pounds, have ring-fenced funds, grant shareholders a vote on deals, and return the cash if they fail to secure a target. It’s up to the government to tackle another disadvantage read more : British liability laws discourage companies from publishing forecasts about their business in the way most firms listing through U.S. SPAC deals do. But by the time UK regulators have finished watering down their rules, the party may be over. (By Peter Thal Larsen)On Twitter http://twitter.com/breakingviews Earlier in Capital Calls: EU music probe will ring in Apple’s ears read more Darktrace’s IPO pop is deceptive read more Concise insights on global finance. ----------------------------------------------- SPACWATER. British regulators are scrambling to join the special-purpose acquisition company boom. The UK Financial Conduct Authority on Friday outlined possible changes in rules governing blank-cheque vehicles under the guise of “strengthening investor protections”. It’s also an attempt to keep up. So far this year more than 300 newly listed entities have raised $96 billion for yet-to-be-determined deals, exceeding the total for the whole of 2020, Refinitiv data shows. The vast majority are in the United States. London is a SPAC backwater because most vehicles are required to suspend their shares when they identify a target. That prevents investors who don’t like the deal from selling. The FCA’s solution is to lift the suspension requirement for SPACs that raise at least 200 million pounds, have ring-fenced funds, grant shareholders a vote on deals, and return the cash if they fail to secure a target. It’s up to the government to tackle another disadvantage read more : British liability laws discourage companies from publishing forecasts about their business in the way most firms listing through U.S. SPAC deals do. But by the time UK regulators have finished watering down their rules, the party may be over. (By Peter Thal Larsen) On Twitter http://twitter.com/breakingviews Earlier in Capital Calls: EU music probe will ring in Apple’s ears read more Darktrace’s IPO pop is deceptive read more World’s back office is suddenly front of mind read more DBS adds to Asia bank optimism read more Endeavor’s Hollywood ending read more