Special purpose acquisition companies have created a new association as federal regulators take a closer look at their business model, Politico reported.

The SPAC Association's members will include a host of financial industry players, from investors to law firms to other trade groups, according to the news organization. SPACs are companies created to raise capital for the acquisition of an existing company. They have come under increasing scrutiny in recent years, with both Republican and Democratic lawmakers proposing greater regulation.

Rajiv Shukla, chief executive of Alpha Healthcare Acquisition Corp. and a member of the group's executive committee, said in an email to Politico that SPAC volume is growing substantially and totaled more than a half-trillion dollars in mergers during the first half of 2021.

The new associations will "help set operating standards, educate through sharing of best practices, partnership with regulators and policymakers and dialogue with media," Shukla said.

No other details about the association were available and the group apparently does not have a website. Several nonprofit groups already go by the initials SPAC, including the School & Sports Association of California.

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