Prospectus Directive still poses risk to Aim

Author: | Published: 1 Jun 2005

Companies listing on the UK's Alternative Investment Market (Aim) could be forced to comply with the EU's Prospectus Directive despite the exchange's efforts to exclude itself from the scope of the new regime.

The Directive, which takes effect on July 1, would impose strict form and content rules on the market's issuers, requiring a comprehensive three-part prospectus and detailed financial information for deals worth more than €2.5 million ($3.15 million) or offered to more than 100 investors.

Aim opted for exchange-regulated status in 2004 to prevent its listed companies from having to comply with the EU rules, which only apply to companies listed on an EU-regulated exchange.

"This is already a problem because some of the deals we are now working on will not come to market until after July 1 and so will have to comply with the new regime," says Aim specialist Anthony Brockbank, a...