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Investor Protection: Restrictions on SPACs and Financial Advisors

This bill aims to protect individuals who are not experienced investors from risky investments in Special Purpose Acquisition Companies (SPACs). It introduces restrictions for financial advisors and brokers, prohibiting them from recommending or facilitating SPAC transactions unless specific conditions regarding compensation or disclosures are met. This is intended to enhance citizens' financial security and ensure greater transparency in the investment market.
Key points
Financial advisors and brokers cannot recommend or sell SPAC shares to non-accredited investors unless the SPAC's compensation is low (5% or less) or the SPAC makes required disclosures.
The goal is to protect less experienced investors from excessive fees and lack of transparency in SPAC investments.
These changes aim to increase citizens' financial security by limiting access to risky investment products without proper safeguards.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 117_HR_5913
Sponsor: Rep. Sherman, Brad [D-CA-30]
Process start date: 2021-11-09
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Protecting Investors from Excessive SPACs Fees Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_5913.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-11-09.

What are the main provisions?

Key points include:

  • Financial advisors and brokers cannot recommend or sell SPAC shares to non-accredited investors unless the SPAC's compensation is low (5% or less) or the SPAC makes required disclosures.
  • The goal is to protect less experienced investors from excessive fees and lack of transparency in SPAC investments.
  • These changes aim to increase citizens' financial security by limiting access to risky investment products without proper safeguards.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Sherman, Brad [D-CA-30].

What is the latest detailed status?

The latest detailed status is: Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 29 - 23.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

CATEGORIES

Economy