Belgium to allow SPACs?

, Lexology

Created almost thirty years ago, SPACs have experienced a resurgence in popularity since 2020. While the phenomenon is most popular in the United States, SPACs are rapidly emerging on this side of the Atlantic, especially in the Netherland and Luxembourg. Adding to that, The Belgian supervisor (the Financial Service Market Authority (FSMA)) recently published a consultation about a proposal for minimum standards for the structuring, information disclosure and trading in SPACs on Euronext Brussels.

Whilst the draft prospectus is to be approved by the FSMA, the application for admission to trading is to be filed with Euronext Brussels or any other stock exchange which will conduct an in-depth analysis of the business, business model, finances and features of the proposed offer as well as the identification of key managers, board members and UBOs.

In its draft recommendations the FSMA considers that, in light of their complexity, investment in SPACs should be reserved for professionals. Intermediaries should take into consideration what this means for the application of conduct of business rules to transactions carried out on the market. By the same token, the FSMA takes the view that the offer of units should be reserved for qualified investors within the meaning of Article 2 of the Prospectus Regulation.

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