June 04, 2021

ThinkAdvisor Shares Insights From Jim Lundy on the SEC Chair’s Testimony Highlighting IPOs and SPACs and Other Key Market Trends

SEC and regulatory enforcement defense partner Jim Lundy spoke to ThinkAdvisor about a statement from U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler regarding how the agency is aiming to address market trends, such as the growth in initial public offerings (IPOs) and special-purpose acquisition companies (SPACs).

In the article “Trendspotter: Markets Are Evolving Faster Than the SEC,” ThinkAdvisor described how Gensler told members of the House Appropriations Committee that while the capital markets have increased, “the SEC has not grown to meet the needs of the 2020s” and needs more funds and staff.

According to the publication, the SEC is now requesting $1.993 billion for FY 2022 so that it can add 65 positions. Gensler also pushed for more resources so that the agency could better police market developments.

“Chair Gensler has one of the deepest and most sophisticated regulatory and enforcement backgrounds of all of the SEC chairs. His testimony regarding highlighting five key capital market trends — and, in particular, IPOs and SPACs — reflects that,” Lundy told ThinkAdvisor.

“While his statement focuses on possible proactive regulatory measures, such as rulemaking, he does also discuss focusing the Division of Enforcement’s efforts in this area,” Lundy said.

Lundy added, “Thus, while Chair Gensler’s regulatory and rulemaking initiatives may be forward-looking, we should expect enforcement initiatives as well to address what he may have inherited regarding the booming IPO and SPAC marketplace.”

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