The London Stock Exchange (LSE) has issued a discussion paper outlining its proposed changes to the AIM Rulebooks (collectively the AIM Rules for Companies and AIM Rules for Nominated Advisers). The LSE will be seeking support over the coming months as it strives to further develop AIM and consolidate its status as a leading international growth market.
The proposals are being considered to ensure and support AIM’s future development. AIM prides itself on a balanced regulatory framework and a transparent trading market. These in turn ensure increased investor confidence. This blog outlines the most significant proposals taken from the discussion paper.
Earlier discussions
Nominated advisors (or ‘nomads’) play an important role throughout the application process. Nomads are required to assess the appropriateness of a company prior to its admission to AIM and are also required to ensure consistent application of the AIM Rules for Companies.
In the early stages of an application, nomads will approach the LSE to discuss any company which may have unusual features that could raise potential concerns. An admission can be stopped by the LSE if there is any possibility of damage to the reputation or to the integrity of AIM. If issues are not highlighted early enough, there is the prospect of a delay, postponement or complete withdrawal of a planned admission.
One proposed change is to require nomads to enter into discussions with the LSE at an earlier stage, outlining key information regarding the company and its admission. This requirement would be codified into the AIM Rulebooks and would apply to all admissions, not just to those which raise potential concerns. Just how early these discussions would commence is unclear and is one point on which the LSE welcomes feedback.
