U.S. SEC Opens Inquiry Into SPACs: Reuters

The SEC is currently requesting voluntary information from Wall Street banks regarding internal controls and pricing, focusing on due diligence and potential insider trading. This is not a formal investigation yet. The SEC is particularly interested in the gap between when a SPAC lists and when it acquires a company, as insider trading could occur if information about acquisition targets is leaked.

How does the SEC's request for voluntary information differ from a formal investigation?

What could be considered illegal in the context of SPACs and SEC regulations?