LONDON STOCK EXCHANGE ISSUES TWO CONSULTATIONS ON AIM RULES
Proposals for new criteria for “cash-shells” and changes to AIM Rules resulting from the UK implementation of the Prospectus Directive
The London Stock Exchange today issued two consultation notices seeking views from market participants on proposed changes to the AIM rules.
The Exchange is proposing changes to the criteria governing the admission and conduct of Investing Companies (“cash-shells”) on AIM along with other technical rule changes in relation to the role of nominated advisers and sanctions available to the Exchange. The main proposal is to introduce a minimum fund-raising requirement for Investing Companies of £3 million in cash, together with rules mandating that the company make a significant acquisition within twelve months of its admission to AIM.
The Exchange is also consulting on proposed changes to the form and content of AIM admission documents, following the expected UK implementation of the Prospectus Directive on 1 July 2005. From this date, the existing UK Public Offer of Securities (POS) Regulations will cease to exist. As a consequence, the Exchange is proposing to adopt a new standard based on the Prospectus Directive, but carving-out significant elements deemed inappropriate for AIM.
Commenting on the two consultations, Mat Wootton, Deputy Head of AIM, said:
“These consultations are designed to ensure that AIM maintains high regulatory standards and keeps up to date with best market practice, whilst ensuring that the AIM rules continue to provide flexibility for AIM companies and advisers."
The deadline for responses to both consultations is 4 March 2005.
For media enquries, please contact:
Richard Webster-Smith Press Office +44 (0)20 7797 1222
Notes to editors:
Notice (AIM 11), consults on proposed technical changes to the AIM Rules governing the admission criteria and conduct of Investing Companies (cash-shells) on AIM along with other selected rule changes in relation to nominated advisers and sanctions available to the Exchange.
AIM11- AIM investing companies and other rule changes consultation
Notice (AIM 12), consults on proposed changes to the AIM rules associated with the implementation of the Prospectus Directive (PD) into UK law on 1 July 2005. From 1 July 2005 the (UK) Public Offer of Securities (“POS”) Regulations, will be repealed. These rules have governed the content of AIM admission documents since its launch in 1995.
The Exchange is proposing that selected elements of the PD equivalent to the existing POS Regulations be incorporated into the AIM rules. This new standard will be based on the PD but with significant carve-outs from the full requirements, which are deemed inappropriate for AIM.
The proposal follows, and is consistent with, AIM’s change in status from an “EU regulated market” to an “exchange regulated market” in October 2004. By adopting the definition of “exchange regulated market”, the Exchange was able to preserve AIM’s unique regulatory model which has been a key component in its development as Europe’s most successful growth market. Following the adoption of this definition the vast majority of companies joining AIM will not have to issue a PD-compliant prospectus upon admission.
AIM notice 12 - AIM admission documents consultation
For more information on AIM please visit: www.londonstockexchange.com/aim