Flaunt the imperfections: Information, entanglements and the regulation of London’s Alternative Investment Market

Figures & data

Figure 1 Admission and fundraising activity on the AIM market

Source: LSE.

Figure 2 Key participants in the Alternative Investment Market

Source: Mallin and Ow-Yong (1998).

Table 1 Listing requirements and obligations, LSE main market and AIM compared

Main market	AIM
Admissions requirements
Minimum 25 per cent shares in public hands	No minimum public float
Three year trading record	No trading record required
Pre-vetting of admission documents by recognized authority	No pre-vetting of documents
Admission takes several months	Admission can be achieved within two weeks
Minimum capitalization on entry	No minimum capitalization
Sliding scale admission fees up to £142,000	Flat rate admission fee, £4,000
Continuing obligations
Prior shareholder approval required for substantial acquisitions and disposals	No approval required
Companies subject to extensive continuing obligations by UK Listing Authority
Sliding scale annual fees up to £20,000	Flat rate annual fee: £4,000
Other costs and benefits
Fees for subsequent issues	No charge for subsequent issues
	Beneficial tax regime for company owners

Source: Jenkinson and Ramadorai (2013).

Table

Name/Pseudonym	Role
Andrew Beeson	Founder Beeson Gregory, broker, Chairman of Schroders
Andrew Buchanan	Fund manager
Barry Hocken	OFEX executive, Newstrack founder, small company financier
Brian Winterflood*	Founder, Winterflood Securities, market-maker
Corporate advisor 1*	Small company financier
Corporate advisor 2*	Small company financier
Corporate advisor 4*	Small company financier
Corporate advisor 5	Small company financier
Emma Jenkins	Former MD of OFEX, daughter of John Jenkins
Fund manager 1	Fund manager
Geoff Hoodless*	Founder Hoodless Brennan, broker
Gervais Williams	Fund manager
Giles Vardey*	LSE Director of Market Development, Chairman of PLUS
John Jenkins	Founder, JP Jenkins, founder OFEX, former chairman of OFEX
Jonathan Jenkins*	Former MD of OFEX, son of John Jenkins
John French	Company promoter
Marcus Stuttard*	Current Head of AIM and UK Primary Markets at the LSE
Market executive 1*	Market executive
Market executive 2	Market executive
Market executive 3	Market executive
Market executive 4	Market executive
Market executive 5	Market executive
Market executive 6*	Market executive
Market maker 1	Market-maker
Market maker 2	Market-maker
Martin Hughes	Seconded to AIM launch team
Paul Brown	Cofounder JP Jenkins Ltd
Phil Nathan	Director of broking, Charles Stanley
Promoter 2	Company promoter
Public relations 1	Former journalist, Public relations
Public relations 2	Public relations
Public relations 3	Public relations
Public relations 4	Former journalist, Public relations
Simon Brickles	Former Head of AIM, former CEO of OFEX
Stephen Hazell-Smith*	Fund manager, former Chairman of PLUS
Stephen Norcross*	Director of broking, Finncap
Theresa Wallis*	Former Head of AIM
Tim Ward*	Former member of AIM launch team, CEO of QCA

* denotes multiple interviews. Interviews were conducted on the record unless requested otherwise. Anonymity, where requested, required the anonymizing of groups e.g. ‘market executive’.

Mallin, C. & Ow-Yong, K. (1998). Corporate Governance in Small Companies – The Alternative Investment Market. Corporate Governance: An International Review, 6(4), 224–232.

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Jenkinson, T. & Ramadorai, T. (2013). Does one size fit all? The consequences of switching markets with different regulatory standards. European Financial Management, 19(5), 852–886.

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