SGS 3 (AIM) Flashcards
Market Capitalisation?
Doesn’t apply to AIM companies
What is a Broker?
Agent for clients who want to buy or sell shares. Find investors for shares in a primary issue.
a requirement for AIM companies only.
What party must be appointed in relation to submission of admission documents and certain continuing obligations for premium listed companies only?
A sponsor
Role and responsibilities set out in LR 8.3 and 8.4
which rules apply to companies regardless of where they are listed?
Rules of the Loe and the LSE Admission and Disclosure Standards.
Which LRs and DTRs apply to AIM companies?
LRs do not apply
MAR
DTRs 2, 3 and 5.
Aim is not a regulated market but what is it?
A recognised investment exchange.
Therefore it is a prescribed market under FSMA.
Which references in the Companies Act include Aim companies and which exclude them?
‘Companies’
‘Quoted Companies’
How are disclosure requirements for AIM companies less onerous?
LRs don’t apply
Only DTRs 2, 3 and 5 apply
Why can AIM be cheaper to trade?
No stamp duty payable.
Classed a ‘unquoted shares’ for tax purposes –> certain reliefs apply.
3 disadvantages of listing on AIM?
Less prestigious and therefore less publicity.
Shares less liquid
Nominated Advisor and Broker must be retained at all times (regular fees)
What is the purpose of a lock in?
prevents market for the shares from collapsing.
Why is a prospectus generally not required for AIM listed companies?
Test 1 - often meets the institutional investor exception.
Test 2 - not a regulated market.
Public hands requirement rules for standard and premium listings?
Standard = 14.2.2R Premium = 6.14.1R
NO need for AIM.
Four advantages of AIM listing?
Less regulated than LSE (AIM Rules less onerous than LDPT Rules)
Easier to be exempt from prospectus requirements.
Do not need 25% shares in public hands
No need to comply with corporate governance code and continuing obligations much lighter.
2 further disadvantages of AIM listing?
Risky
Need to produce AIM admission document
