On Monday, The Times published the response of Marcus Stuttard, head of AIM, to public criticism Sharesoc levelled against the lack of effective regulation of the AIM market.
We have today sent the following letter to the editor of The Times, replying to that article:
Thank you for publishing the article entitled “We’re no dodgy casino…” on 2nd May, containing comments I made at the AGM of the London Stock Exchange Group, on behalf of ShareSoc, and the response of Marcus Stuttard, head of AIM.
Mr Stuttard comments: “[People] wouldn’t invest if they felt there was any kind of problem…”. He is right. Many won’t invest in AIM companies, due to AIM’s reputation as a casino, thus depriving legitimate businesses of much needed capital via this route.
ShareSoc can cite a litany of frauds and abuses perpetrated on investors in the AIM market – many within the last year alone. Some of these were Chinese companies, which the AIM market sought to attract, and some home grown.
Without transparent and effective prosecution of the perpetrators of these frauds there is no deterrent – and that is why we continue to see them occurring time and again.
The LSE seems well satisfied with the listing and transaction fees it generates from its operation of the AIM market but does not seem to want the inconvenience of having to properly fulfil its role as regulator of that market. We therefore now call upon the FCA to step in and conduct a thorough review of the operation and regulation of the AIM market.
Director, UK Individual Shareholders Society
Cc Martin Wheatley
Financial Conduct Authority