AIM Rules - 2007 Update

01.01.07

AIM Rules - 2007 Update

The London Stock Exchange published a revised version of the AIM rules (the Rules) on 20 February 2007. Points to note include the following:

Information to be disclosed on website. The rules list certain information which must be published on a website. The information should be maintained and kept up to date.

Examples of the required information are -

  • a description of the company's business
  • details of the company's directors and their responsibilities
  • information relating to the AIM securities in issue
  • recent financial reports
  • announcements made by the company to Regulatory Information Services in the past 12 months
  • details of the company's nominated adviser and other key advisers

Additional matters requiring public announcement. Changes to the information disclosed regarding directors' details or the company's website address must be disclosed by a public announcement.

Rule Book for nominated advisers. There is now a separate rule book for nominated advisers (NOMAD rules). The new rules largely restate the NOMAD obligations set out in the previous version of the AIM rules although the consensus view is that the London Stock Exchange's approach indicates tighter regulation of NOMADs. Amongst other things, the NOMAD rules require the retention of sufficient records to maintain an audit trail of key discussions, advice and decisions relating to AIM companies for which a NOMAD acts. NOMADS should be able to demonstrate the basis for advice given and key decisions taken. Records should be retained for the duration of a NOMAD engagement and for at least three years afterwards.

Increased LSE disciplinary powers. The cap on the fines which may be imposed on a company or NOMAD by the AIM Executive Panel has been increased from £25,000 to £50,000 per breach.

For further information, please view a detailed briefing note here, or contact Andrew Akintewe 0131 656 0210 / andrew.akintewe@brodies.com.