FSA plans tougher cash-shell rules
The UK Financial Services Authority on Thursday proposed that special purpose acquisition companies should not be able to gain premium listings in the UK, in a consultation paper which included a number of potential changes to UK listing rules to meet changing market practices.
The report said that cash-shell acquisition vehicles or externally managed companies should not be eligible for premium listings. Its reasoning is that the advisory firms which make the acquisitions provide effective executive management, despite not being accountable to shareholders.
While the number of these kinds of companies is
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