SEC Plans to Curb Bullish SPAC Forecasts and Add More Disclosures

Blank-check companies would be required to disclose more information about their sponsors and potential conflicts of interest under a new plan from the U.S. Securities and Exchange Commission, the latest effort by regulators to rein in the once red-hot market.

The agency proposed a raft of new rules on Wednesday that includes curbing legal protections keeping special purpose acquisition companies from being sued by investors over embellished projections about the firms they take public, according to a statement from the watchdog. The changes are aimed at applying the same protections to SPACs that investors are accustomed to from traditional initial public offerings.