When the exposure is going to exceed 10% of the equity, the commercial documents must include an express mention of the risks.

When the exposure is going to exceed 10% of the equity, the commercial documents must include an express mention of the risks.

When the exposure is going to exceed 10% of the equity, the commercial documents must include an express mention of the risks.

National Stock Market Commission.

When a investment fund or sicav invests in a SPAC, this position will be considered as complex, so it will have a condition attached. This has been clarified by the National Securities Market Commission (CNMV) in the latest update of questions and answers on Sustainability and Regulation of IIC ECR and Other Closed Collective Investment Vehicles.

The investment of the Spanish funds and sicav in these special purpose acquisition companies (SPAC, for its acronym in English) will be “suitable provided that its shares are admitted to trading on regulated markets or multilateral trading systems that meet the requirements of art. 48.1.a) of the RICC and all the criteria indicated in article 15 of ORDER EHA/888/2008, of March 27, are observed, in particular, that the liquidity of these shares does not compromise the capacity of the IIC to meet reimbursements and that a reliable valuation is available”reads the document.

The market supervisory body indicates in its response that the investment in SPACs must comply with the provisions of the prospectus and the key investor information document (DFI) and, “taking into account that it is a complex investment, when exposure to SPACs will exceed 10% of the equity, such documents must include an express mention of the risks what it can entail,” he says.

First Spanish SPAC

These listed companies of North American origin have gained a lot of prominence in the last year, as a result of the Covid-19 pandemic. In fact, it is the signature A-Z Capital (Jorge Lucaya) who has launched the first Spanish SPAC in Europe after raising 175 million euros together with his British partner STJ Advisors (John St. John).

Listed in Amsterdam, the vehicle (Spear Investments II) It will have a period of 15 months, extendable for another six months, in two periods of three, to search for a company to merge with. This company will be a European company valued between 750 and 2,000 million euros that has benefits or is close to making them.

Among the characteristics for the acquired company, it is found that it be “innovative”, use technologies such as machine learning or artificial intelligence or have among their priorities the management of the supply chain, the decarbonisation of the economy or the circular economy.

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