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The London Stock Exchange has today announced a number of regulatory changes for AIM, its international market for smaller, growing companies. These changes are intended to ensure that AIM maintains the right regulatory balance as the market continues to grow and thrive internationally.
The changes, which build upon earlier market developments, include the publication of a new rulebook for Nominated Advisers and an enhanced disclosure regime for AIM companies.
The “AIM Rules for Nominated Advisers (Nomads)” is introduced in addition to the existing “AIM Rules for Companies” and codifies the role and responsibilities of Nomads based on existing market best practice. The new rulebook provides examples of the types of activities the Exchange expects Nomads to undertake in order to confirm to the Exchange that a company is appropriate for AIM, and ensure it is able to comply with the AIM Rules on an ongoing basis.
In addition, the Exchange is introducing enhanced disclosure requirements for AIM companies, such as mandating all AIM companies to maintain a website and to display core management and financial information, including admission documents, on it.
Martin Graham, Director of Markets and Head of AIM at the London Stock Exchange, said:
“AIM has become a huge success since its launch in 1995. As the market grows and becomes increasingly international, the Exchange will take incremental steps to build on the quality and integrity of the market. As a result, AIM will have a bright future as the world’s growth market.”
Since its launch in 1995, AIM has developed into the world’s leading market for smaller, growing companies. There are now a total of 1,643 companies quoted on AIM from 39 sectors. Within this total, there are currently 350 non-UK companies, from 28 countries. Last year, companies on AIM raised a record £15.7bn, and AIM on its own ranked as the sixth most active global IPO market.
The proposed changes follow on from a wider market consultation and are the result of an internal review undertaken by the Exchange into the operation and regulation of AIM. The review provided positive confirmation that AIM’s regulatory structure and the Nomad system continue to be key factors in AIM’s continued success. The proposed changes are therefore intended to preserve AIM’s current system of regulation, whilst at the same time supporting the maturity, growth and increasing internationalisation of the market.
The regulatory notice, new “AIM Rules for Nominated Advisers” and other documents can be found at: www.londonstockexchange.com/aim/rulechanges2007
