Senator Warren Releases SPAC Report, Announces Plans for Legislation
Senator Elizabeth Warren (D-MA) released a new, 26-page report on Special Purpose Acquisition Companies (SPACs) based on requests for information from several SPAC creators. The report covers issues with how SPACs are structured, SPAC fees, fraud in SPAC disclosures, and self-dealing by SPAC creators and sponsors. Senator Warren plans to introduce the “SPAC Accountability Act of 2022” which would build on the SEC’s March 2022 proposed guidelines for SPACs by codifying expanded definitions of SPAC “underwriters” into law and increase the disclosures required for a de-SPAC transaction. While the legislation has not yet been introduced, the likelihood of Senate vote on the measure is slim. Senator Warren, a member of the Senate Banking Committee also introduced the “Stop Wall Street Looting Act” in October 2021, a bill that would focus on the practices of private equity, that legislation also has not been considered by the Senate.
Click here to read a press release from Senator Warren on the report and proposed legislation.