The London Stock Exchange has recently released a couple of notices outlining action taken by it for breaches of the AIM Rules.
In December 2007, the LSE announced that it had privately censured and fined an AIM company and a nominated adviser in separate cases. The AIM company was privately censured and fined £15,000 for its failure to seek advice from its nominated adviser regarding compliance with the AIM Rules as required by AIM Rule 31. The failure to seek advice resulted in a failure to aggregate transactions and a resultant breach of AIM Rule 12 which deals with substantial transactions by AIM companies. The nomad was privately censured and fined £30,000 for its failure to exercise due skill and care in relation to the admission of a company to AIM. The nomad had failed (i) to identify the need for the inclusion of interim accounts in the admission document, (ii) to identify that projections in the admission document were not presented in a format that complied with the AIM Rules and (iii) to ensure that the required level of analysis was undertaken to support the working capital statement.
In January 2008, the LSE announced that it had taken disciplinary action against nine AIM companies in September 2007 for failing to comply with the requirement to maintain a website containing the information specified by AIM Rule 26. The companies were fined a total of £95,000. Seven warning notices were issued to other AIM companies for less serious breaches of AIM Rule 26.
The full text of the notices may be viewed at: