SPACs and More: Key Proposals for Change to the UK’s Listing Regime

On April 30, 2021, the Financial Conduct Authority launched a consultation on proposed changes to the UK Listing Rules as they apply to special purpose acquisition companies, which have gained popularity in recent years as a structural alternative to a traditional initial public offering.

The consultation comes in response to the report by Lord Hill, published on March 3, 2021, which includes a number of proposed reforms to the UK listing regime and rules related to reverse takeovers by “shell companies”.

The proposed changes are expected to be the first of a sweeping set of reforms that, as a whole, aim to strengthen the UK’s position as a hub for international equity listings, including in relation to SPAC listings on the London Stock Exchange. The FCA expects to publish final rules relating to UK SPAC listings during the summer and final rules implementing the other proposed reforms to the UK Listing Rules by the end of the year.

Please click here to read the full alert memorandum.