Changes to the AIM Rules disclosure requirements

by Dentons
Contact

Dentons

Minor changes to the ongoing disclosure requirements in AIM Rule 26 have come into force, following AIM's designation as an SME Growth Market at the start of 2018. More significant changes relating to corporate governance disclosure, on which the London Stock Exchange (LSE) has been consulting, are likely to take place in June 2018.

MiFID II changes

The SME Growth Market designation was developed by the EU Commission as part of its capital markets union plan, which aims to develop more integrated capital markets within the EU. It is an eligibility requirement for SME Growth Markets that certain regulatory information remains available for five years once published.

In practice this means that an AIM company must have the following available on its website for a period of five years from publication:

  • annual financial reports published pursuant to Rule 19;
  • half-yearly, quarterly or similar reports published pursuant to Rule 18;
  • any inside information which it must disclose publicly under the Market Abuse Regulation; and
  • any prospectus. 

This extended reporting time only applies to information published on or after 3 January 2018.

Corporate governance changes

The LSE has announced in its most recent Feedback Statement and Consultation Paper that it is proposing to introduce a requirement in AIM Rule 26 for AIM companies to comply with or explain against a recognised corporate governance code. 

The LSE believes that the comply or explain approach is a helpful approach to yield the long-term benefits that can be gained from good corporate governance.

It is proposing to implement this requirement from 30 June 2018. Although final implementation is subject to the results of the consultation, this proposal has already received positive feedback from a majority of the respondents to the LSE's July 2017 Discussion Paper. It is therefore unlikely that there will be material changes to the proposal. 

In practice, this means that, from 30 June 2018, the position is likely to be as follows:

  • An AIM company will no longer be able to state that it has not adopted a corporate governance code. 
  • The company will need to provide details on its website of:
    • the recognised corporate governance code that the board has decided to apply;
    • how the company complies with that code; and
    • where it departs from its chosen corporate governance code an explanation of the reasons for doing so. 
  • There will be flexibility around which governance code an AIM company may choose, as the LSE considers it preferable for AIM companies to have a range of options to suit their specific stage of development and size. The proposed rule change only requires that the chosen code is a "recognised" one. 

Well-established benchmarks for AIM companies include the Quoted Companies Alliance Corporate Governance Code for Small and Mid-Size Quoted Companies and the UK Corporate Governance Code. However, for some companies, for example a company admitted to another market, it may be more appropriate to report using its home jurisdiction standards.

  • The LSE will expect AIM companies to ensure that meaningful information is provided to investors for them to be able to understand an AIM company's approach to governance.  

Now that the consultation has closed, the LSE plans to publish the final rules as soon as practicable. AIM companies and their nominated advisers should then start considering what steps they should be taking to comply with the new requirements.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Dentons | Attorney Advertising

Written by:

Dentons
Contact
more
less

Dentons on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.