Bolton gets his wish as SEC tightens ‘reverse merger' rules

The Securities and Exchange Commission (SEC) has approved rules making it harder for overseas firms to list in the US via mergers with shell companies - a move advocated by Fidelity's Anthony Bolton earlier this year.

Bolton called for greater regulation of so-called reverse mergers in the US earlier this year, after warning the relatively undemanding auditing requirements imposed on such companies was bringing US markets into poor repute. The manager of Fidelity's China Special Situations trust said his investments in two such companies, which typically find reverse mergers faster and more cost-effective than filing for an IPO, had produced losses for the fund. The SEC has previously warned about the quality of the auditing of Chinese companies' financial reporting and said the new rules would pro...