FCA Publish Changes To London Stock Exchange Listing Rules For SPACs

FCA Consultation

In May 2021, the UK Financial Conduct Authority ("FCA") consulted on changes to aspects of the London Stock Exchange ("LSE") Listing Rules that apply to special purpose acquisition companies ("SPACs").  A SPAC is a type of company formed to raise money from investors, which it then uses to acquire another operating business.

The primary purpose of the consultation was to consult on a change to the Listing Rules to remove the presumption of suspension for SPACs that meet certain criteria which has proved a barrier to SPACs listing on the LSE.  

Key Listing Rule Changes

The FCA Listing Rule changes will come into effect on 10 August 2021 and will dis-apply the presumption of suspension where a SPAC has the following key features: