SEC Leans on SPACs for Detailed Disclosures of Risk, Controls

Wall Street’s top regulator promises to issue new, tougher rules for SPACs, but the agency already has ramped up its scrutiny of the blank-check companies that became market sensations in 2020.

The Securities and Exchange Commission is questioning growth projections, asking for details about risks, and seeking more information about the internal controls of individual special purpose acquisition companies, according to comment letters it has sent to companies.

The queries, which the agency makes public after completing its reviews, are part of the SEC’s normal process of combing through companies’ registration statements to ensure critical disclosures don’t mislead investors. While ...