New IOSCO SPAC network discusses regulatory issues raised by SPACs

Jean-Paul Servais, Chairman of the Financial Services and Markets Authority, Belgium and Vice-Chair of the IOSCO Board.

IOSCO’s SPAC network held its first meeting on Monday July 26 to discuss the issues raised by special purpose acquisition companies (SPACs). While SPACs have long existed, transactions have surged recently, drawing regulatory attention to the issues SPACs raise.

While SPACs may offer alternative sources of funding and provide opportunities for investors, they may also raise regulatory concerns.

Following an initial discussion on this issue, the IOSCO Board agreed at its meeting on 9 June 2021 to establish an IOSCO SPAC Network to facilitate information sharing about SPACs and monitor developments in this area.

The IOSCO SPAC network will be chaired by Jean-Paul Servais, Chairman of the Financial Services and Markets Authority, Belgium and Vice-Chair of the IOSCO Board.

Servais said: “I am pleased that so many members of IOSCO have joined the SPACS network to exchange experiences on non-traditional IPOs via SPACS and discuss emerging issues related to investor protection and fair, orderly and efficient markets.”

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.