On 18 December 2008, the London Stock Exchange issued a notice setting out proposed changes to the AIM Rules for Companies (AIM Rules) relating to investing companies as well as certain other changes.
The LSE's notice sets out proposed changes to the AIM Rules relating to investing companies. There will also be a new "AIM Note for Investing Companies". The proposed changes include:
- replacing the current requirement to have an 'investing strategy' with the requirement to have a detailed and precise 'investing policy' setting out the company's investment parameters. The investing policy will require shareholder approval for subsequent material changes;
- clarification from the LSE as to the types of investing company that it expects to be appropriate for admission to AIM;
- new rules relating to investment managers for externally managed investing companies, including specific disclosure requirements;
- new rules regarding independence between the board, the nominated adviser and any investment manager;
- confirmation that when preparing an admission document for investing companies the specific disclosure requirements of Annex XV of Appendix 3 to the Prospectus Rules should be followed;
- information on how to apply the class tests to investing companies; and
- clarification that the £3 million fundraising required by AIM Rule 8 should be from independent investors rather than existing owners/managers.
Certain minor amendments are being made to the AIM Guidance Note on Mining, Oil and Gas Companies first published in March 2006.
The LSE is also proposing to clarify the status of the new Note for Investing Companies and the Note on Mining, Oil and Gas Companies. Going forward, it is proposed that these notes will form part of the AIM Rules applicable to companies and nominated advisers.
The LSE's notice also sets out changes to AIM Rule 5 and the guidance to it relating to the fact that fees are not now payable three days prior to admission. The changes to AIM Rule 5 are administrative in nature and do not form part of the consultation. They therefore have immediate effect.
Responses to the consultation should be submitted by 13 February 2009.
View AIM Notice 30 (5 page pdf).
View proposed new AIM Note for Investing Companies (12 page pdf).
View proposed amended AIM Note for Mining, Oil and Gas Companies (14 page pdf).