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SEC Sues SPAC Adviser for Not Disclosing Conflicts of Interest

The US Securities and Exchange Commission sued an investment firm on Tuesday for failing to properly disclose conflicts of interest tied to special purpose acquisition companies -- the latest example of Wall Street’s main regulator clamping down on the once white-hot market. 

The SEC alleged that Perceptive Advisors didn’t make to clear to investors that the sponsors of multiple SPACs it had formed were owned by both the firm’s personnel and a private fund that it had advised. The firm also didn’t file a form disclosing its ownership of a public company on time, the agency said in a statement