New requirements for AIM companies
What is new?
From 3 July 2016 the Market Abuse Regulation (“MAR”) amends the existing regimes for AIM companies relating to dealings in shares by directors and senior management and their associated persons, and the disclosure of inside information and keeping insider lists.
What does this mean?
All AIM listed companies should put in place a share dealing code which complies with the minimum requirements set out in new AIM Rule 21 and which is consistent with the new regime under MAR.
Although there is no intention to amend the AIM Rules relating to inside information, AIM companies will also have to comply with similar, but not identical, disclosure obligations under MAR. AIM companies and their advisers will be required to maintain insider lists in a prescribed electronic format which requires detailed information to be included.
AIM companies should be aware that compliance with MAR does not necessarily mean that all their obligations under the AIM Rules are satisfied, and vice versa. The FCA is the competent authority under MAR and a breach of MAR may lead to fines, public censure and/or a ban on dealing. Failure by an AIM company to comply with the AIM Rules may result in the London Stock Exchange taking disciplinary action in addition to its powers to suspend or cancel admission.
What should you do?
As this requirement comes into force in under a month we would recommend that all AIM listed companies work with their Nomad and legal advisers now to put in place new share dealing codes and to review processes relating to the disclosure of inside information and the use of insider lists.
For more information, please contact Kate Doody, Associate, Corporate Finance.
Published: 10 Jun 2016