AIM companies prepare for MAR

The London Stock Exchange has published an edition of Inside AIM to support nominated advisers who are preparing their clients for the implementation of the Market Abuse Regulation. The publication essentially provides further detail behind the changes proposed to the AIM Rules in AIM Notice 44 (see previous).

  • AIM Rule 11 (general disclosure of price sensitive information) – it is proposed that this rule will be kept in place. Inside AIM recognises the overlap between AIM Rule 11 and Article 17 MAR (public disclosure of inside information) but states that the rules should be considered separately. Whereas the aim of Article 17 is to protect investors from market abuse, the purpose of AIM Rule 11 is to maintain a fair and orderly market. Consideration of the two rules will not necessarily lead to the same result. AIM companies must comply with both rules and must keep in mind that compliance with one does not guarantee compliance with the other. For example, the ability to delay the publication of inside information under MAR would not override an obligation to disclose under AIM Rule 11.
  • AIM Rule 17 (disclosure of miscellaneous information) – it is proposed that this rule will be deleted regarding the need to disclose directors’ dealings in the AIM company’s securities.  AIM Rule 21 (restriction on dealing) – it is proposed that this rule, restricting dealing during close periods, will be deleted. Both areas will be covered by Article 19 MAR. However, a new AIM Rule 21 will require AIM companies to have a reasonable and effective dealing policy in place from admission. Existing AIM companies will need to update their existing policies by 3 July 2016. Inside AIM states that the LSE does not intend to prescribe the detailed content of the dealing policy but AIM companies and advisers must ensure that the policy is capable of working in practice. The obligation to have such a policy in place will be separate to the AIM company’s compliance with Article 19 MAR, so compliance with Article 19 does not mean that the obligation under AIM Rule 21 will be satisfied.
  • Inside AIM also highlights the need, following the implementation of MAR, to implement systems and controls to comply with the rules on insider lists under Article 18 MAR.