MFA Submits Comment Letter to the SEC on its Proposed Rules to Enhance SPAC, Shell Company, and Projection Disclosure
June 13, 2022
On June 13, 2022, MFA submitted a comment letter to the SEC on its proposed rulemaking related to special purpose acquisition companies (SPAC) and business combination transactions involving shell companies.
MFA agrees with the Commission’s stated goal of increasing investor protections but believes that the implications of the Proposed Rules are significant and have the potential to materially weaken the viability of the SPAC model going forward. MFA believes that SPACs provide an important option for firms looking to access the public markets and for investors of all types to invest in firms that would otherwise be privately held. The letter suggests the Proposed Rules be revised with an eye towards flexibility and less prescriptive elements, in order to increase investor protections while still preserving the benefits of the SPAC model.