Effective from the 11th August, there are additional requirements under AIM Rule 26. Rule 26 covers what information is required to be published on a company’s web site – for example the listing prospectus and last Annual Report. In future a company must disclose what corporate governance code the company is using, or not as the case may be. Currently AIM companies often refer to the Quoted Companies Alliance (QCA) Corporate Governance Code for Small and Mid-Size Quoted Companies, some use the main UK Corporate Governance Code that main market companies have to “comply with or explain”, but many do not use any specific code.
In future they will also need to include at least the last three years Annual Reports (previously only the latest) and they will also need to update information on the number of securities in issue and significant shareholdings at least every six months.
In addition there is a new requirement to indicate whether the company is covered by the City Code on Takeovers and Mergers which provides significant additional protection for investors. Most foreign registered companies are not so covered.
These changes are surely beneficial for investors, but it seems odd that information on significant shareholdings and number of shares in issue can still be as much as six months out of date.
Other prospective regulatory changes
Effective from the 6th October, share trade settlement is moving to T+2 (currently T+3), which means you should get the cash credited to your accounts on a share sale a day earlier.
The FCA is also consulting on the abolition of interim management statements (i.e. quarterly reports). If you have any views on that subject please let ShareSoc know.
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