Quoted Business - A Briefing For Quoted Companies, June 2007

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Quoted Business - A Briefing For Quoted Companies, June 2007

Fighting talk: is AIM really "a casino"?

In this edition of Quoted Business, we investigate the recent US jibes on the integrity of AIM. We explore post-flotation issues for executive remuneration and hear about the recent listing of Vycon. We review the impact of the Budget on aim and evaluate changes to aim rules for nomads.

AIM UNDER ATTACK: A CASE OF SOUR GRAPES?

Smith & Williamson's head of AIM, John Cowie, discusses US criticism of AIM

AIM has recently come in for some criticism from the US, with accusations that it is underregulated.

In January this year, John Thain, chief executive of the New York Stock Exchange, said that AIM "did not have any standards at all".

Then, in March, Roel Campos of the US Securities and Exchange Commission (SEC) branded AIM "a casino". He went on to say that "it is a losing proposition to tout lower standards as a way to promote your markets."

These charges from across the pond caused ripples in the City. The London Stock Exchange (LSE) issued strong rebuttals, drawing further press attention to the slurs.

Behind the attack

The premise behind these comments is that AIM is lightly regulated and therefore likely to attract poor quality companies. To us, these attacks sound like sour grapes over AIM's obvious appeal to businesses worldwide compared to US markets, where the administrative...

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