Many AIM-listed companies are not yet ready for forthcoming changes to the market’s rules due to come into force this summer.
The London Stock Exchange (LSE) has set a deadline of August 20 for companies to comply with the changes which include a compulsory demand that all businesses on the market have a website.
However, according to research conducted by Ir26, there are some 422 companies which are still not online, despite the availability of very cheap or even free software which makes this requirement easy to fulfil.
The website needs to include core information about management and financial information such as admission documents. There will also tougher rules for company’s nominated advisers (nomads) as a result of the change in regulations.
AIM says the new rules are being introduced to improve policing of the market’s regulations. When the rules were announced earlier this year the head of AIM, Martin Graham, said that the market would regularly update its rules in order to cope with the market’s growth.
“As the market grows and becomes increasingly international, the exchange will take incremental steps to build on the quality and integrity of the market,” he said.
The LSE says there will be increased staffing to police the new regulations as well as fines of up to £50,000 to cajole non-compliant companies into action.
Ultimately, failure to comply with the market’s rules could lead to expulsion from exchange.
© Crimson Business Ltd. 2007
