SPAC Industry Fears SEC’s Rules Could Finish Off Ailing Market

Regulators are set to end a nearly two-year wait for the final rules around US special-purpose acquisition companies, and observers are warning that the battered industry could be effectively shuttered after having wiped out billions for investors.

The Securities and Exchange Commission will vote on the proposals in a meeting today, potentially capping the fallout from the pandemic-era deal spree by imposing more scrutiny and higher costs on deals.

The decision will likely add to the woes dogging potential issuers and advisers, along with higher interest rates and an oversupply of vehicles seeking private companies to merge with. It’s a ...