The U.S. Securities and Exchange Commission (SEC) has introduced new rules and amendments aimed at improving transparency and investor protection in initial public offerings (IPOs) by special purpose acquisition companies (SPACs) and subsequent de-SPAC transactions.
The new framework mandates enhanced disclosures on key aspects, including:
Conflicts of Interest
SPAC Sponsor Compensation
Dilution Risks
Critical Information about Target Companies
These changes are designed to help investors make more informed voting and investment decisions during SPAC IPOs and business combinations with target companies.
Inline XBRL Tagging Requirements
To improve data accessibility, the SEC now requires these enhanced disclosures to be tagged using Inline XBRL. A draft version of the new SPAC taxonomy has been published and is available for review.