SEC Bars SPACs From Blanket Disclaimers About Accounting Risks

SPACs can’t put disclaimers in their financial statements that their financial reporting could run afoul of U.S. accounting rules, market regulators are warning.

At issue is just how far special purpose acquisition companies—blank-check outfits whose sole purpose is to acquire and take a promising company public—can go in issuing catch-all warnings to investors. The Securities and Exchange Commission in letters to some SPACS warned against broad disclaimers that long-standing SPAC accounting practice could change and lead to future errors. The letters come on the heels of a top SEC accountant saying the agency would object to such disclaimers.

The SPAC ...