The consultation will consider the structural features and enhanced disclosure, including a minimum market capitalisation and a redemption option for investors, required to provide appropriate investor protection.

The proposals will help to ensure that SPACs operate within a framework of high regulatory standards and oversight. Where such protections are in place, we consider that the existing presumption of suspension of the listing for such companies at the point of announcement of an acquisition target is no longer required and the FCA, therefore, intends to consult on this basis, aligning this element of its rules more closely with other major jurisdictions.

The FCA intends for the consultation to be open for a four-week period and will welcome views from the full range of stakeholders. Subject to that process, the regulator would aim to make the new rules and/or guidance by early summer.