“FINRA Targets SPACs in Latest Exam Sweep”

According to a recent article published by Investment News, SPACs are being targeted by FINRA in the latest exam sweep. In recent months, SPACs have become a popular structure in the securities industry, both for investors and the SEC/FINRA. Todd Kulkin is a Partner at Warren Law Group and handles capital raises. He explains that “SPACs are a viable alternative to a Regulation D raise, which isn’t available for “blank check” companies, and this structure takes advantage of the liquidity and ease of exit using the public market.” Jon-Jorge Aras, another partner at Warren Law Group who practices in securities regulatory matters, stated, “it makes sense that FINRA wants to take a closer look at SPACS. While SPACs have promise, they could be hotbeds for fraudulent activity.”

If you’ve received an investigation letter from the SEC or FINRA based upon the use of a SPAC or are interested in utilizing a SPAC to raise capital for your subsequent acquisition, contact the attorneys at Warren Law Group for a complimentary assessment: (866) WLGROUP, or email info@warren.law

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Todd P. Kulkin

Todd P. Kulkin, Partner