New rules that were designed to improve the integrity of the AIM market have done their job, analysts claim.
Experts at the Quoted Companies Alliance (QCA) have praised the regulations that were introduced a year ago for boosting the credibility of the junior market.
The new rules states clearly what is expected of Nominated Advisors (Nomads), making it easier for London Stock Exchange (LSE), to punish them for infractions.
Meanwhile one of the big changes for floated businesses was Rule 26 which obliges companies to have a website which includes their core management and financial information.
John Pierce, chief executive of the QCA, said: “The AIM rulebooks have been successful in improving the credibility of the market while maintaining the lighter-touch regulation that makes it so attractive to smaller companies.
“It is clear the Stock Exchange is taking breaches of the regulations very seriously, given the news that nine companies have been fined a total of £95,000 for lack of transparency and Nomads have also been disciplined.
“It is to be hoped that the rulebooks will continue to help AIM to attract better quality companies, which can only improve the reputation of the market and, as a result, encourage more investment.”
© Crimson Business Ltd. 2008
