The London Stock Exchange AIM Regulation team published the third issue of its newsletter, Inside AIM, in February 2011. The newsletter covers a range of points commonly raised with the AIM team by nominated advisers.
The key points covered in Inside AIM Issue 3 include:
- Dealing with insiders (AIM Rules 10 and 11) – AIM companies are reminded that regulatory information should not be published elsewhere before it is formally notified. AIM companies are also reminded that they must keep impending developments confidential and ensure that they have effective systems in place to ensure the confidentiality of price sensitive information;
- Related party transactions (AIM Rule 13) – the LSE reminds issuers that the specific wording for the fair and reasonable statement must be used and must not be amended or caveated. In addition, the LSE clarifies that where directors are granted bonuses or options which are not part of their normal package, or where the terms of their remuneration package are revised, such transactions are related party transactions within Rule 13 if they are not within "normal parameters"; and
- Reverse takeovers – The LSE confirms that its approach to suspending companies which are in the process of a reverse takeover has not changed. Broadly, if a reverse takeover has been leaked or announced the company's shares must be suspended unless and until an admission document is published in respect of the enlarged AIM entity (with an exception in some circumstances if the target is traded on an EU regulated market).
Inside AIM, Issue 3 is available on the AIM section of the LSE website.