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Former SEC chair on the many 'concerns' surrounding SPACS amid expected new rules
Former SEC Chairman Harvey Pitt on ‘concerns’ surrounding SPACs
The Securitas and Exchange Commission is reportedly expected to reveal a proposal to tighten its rules on special purpose acquisition companies after the blank-check companies have exploded in popularity and have raised some concerns.
Former SEC Chairman Harvey Pitt explained the many "concerns" surrounding a special purpose acquisition company or (SPAC) on Wednesday as new rules are expected to be revealed.
"There have been a lot of concerns about conflicts of interest," he said. "There have been concerns about the over-exuberant description of potential benefits and the like."
He provided the insight on "Mornings with Maria" on Wednesday before the securities regulator is expected to unveil a proposal to tighten its rules on blank-check companies following a frenzy of deals in 2020 and early 2021 sparked concerns some investors are getting a raw deal, Reuters reported.