THE ALTERNATIVE INVESTMENT MARKET: THE REGULATORY ISSUES
| Published date | 01 February 1996 |
| DOI | https://doi.org/10.1108/eb024874 |
| Date | 01 February 1996 |
| Pages | 125-133 |
| Author | TIM STEADMAN |
| Subject Matter | Accounting & finance |
THE ALTERNATIVE INVESTMENT MARKET: THE
REGULATORY ISSUES
Received (in revised form): 26th February, 1996
TIM STEADMAN
TIM STEADMAN
IS A PARTNER AT
HERBERT
SMITH, AN
INTERNATIONAL
LAW
FIRM. HE SPECIALISES
IN COMPANY LAW AND HEADS THE SMALLER
COMPANIES GROUP. IN ADDITION TO HIS
EXPERTISE IN AIM-RELATED MATTERS, HE
ACTS FOR FULLY LISTED AND PRIVATE
COMPANIES IN ALL TYPES OF
MERGERS
AND
ACQUISITIONS
WORK.
HE GRADUATED AT
NOTTINGHAM UNIVERSITY AND BECAME A
PARTNER AT
HERBERT
SMITH IN 1994. HE
CAN BE CONTACTED AT
HERBERT
SMITH,
EXCHANGE HOUSE, PRIMROSE STREET,
LONDON
EC2A
2HS.
TELEPHONE
0171
374
8000,
FAX 0171
496
0013.
ABSTRACT
The Alternative Investment Market was
launched by the London Stock Exchange
with
much publicity
in June 1995. It is a
market
created
for smaller and growing
companies,
with fewer entry
requirements
and continuing
obligations
than for
com-
panies joining
the Official
List of the Lon-
don Stock Exchange. This paper
looks
at
the apparently conflicting goals of
lower
regulation and shareholder protection
which are relevant when
considering
the
new
market before discussing the principal
AIM regulations and some practical
implications
arising from the application
of
those
regulations.
INTRODUCTION
This new market, which is regulated
by the London Stock Exchange, star-
ted operating in June 1995 and is
targeted at small or young companies
in all sectors whose shares or other
securities are not publicly traded and
companies on the Unlisted Securities
Market (USM) of the London Stock
Exchange which do not intend to
move up to a full listing by the end of
this year when the USM closes.
The purpose of this paper is to
describe in outline terms the regula-
tory framework for the Alternative
Investment Market (AIM). The paper
is divided into three parts, namely
lower level of regulation against
shareholder protection, the principal
125
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