UK 14:37 Monday, 26 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Has the London Stock Exchange finally woken up to the fact its AIM Augean Stables is in dire need of a very late spring clean? Over recent months a few clues have started to emerge that the LSE is covertly trying to regain control of its growth market and repair its battered reputation. The latest hint that something is afoot came via this morning’s piece in the Financial Times, with news that the LSE is going to tighten up the rules concerning cash shells. If this is an indicator of a wider initiative to sort out AIM it is something to celebrate. However if the LSE genuinely wants to restore confidence in the “world’s most successful growth market” it is also going to have to take some actions publicly, no matter how difficult they might be.
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Comments
drunken sailor
A few constructive suggestions. The AIM rules are fine, they just need to be enforced and seen to be enforced.
The NOMAD system is flawed but could work much better if the AIM rules for NOMADS were enforced and seen to be enforced.
Save companies money by not requiring them to retain a PR firm – any literate and honest director should be able to write his own releases and get them verified by the NOMAD.
Save even more money for decent cash generating companies that do not need to issue more shares to keep the lights on by not requiring them to retain a broker. The only companies that would need a permanent broker are the cash burners and having a permanent broker would tell you most of what you need to know. Any company that needs to raise cash to fund the capital costs of a decent project can get a temporary broker to do it.
Completely overhaul AIM regulation, it is not fit for purpose in any way shape or form.
Introduce 3 strikes and you are out. 3 dodgy RNSs and the shares are suspended until appropriate board changes happen. Directors who train wreck 3 companies are automatically deem not fit and proper people to be directors of AIM companies.
DUCK AND DIVE
Looking forward to this “genuine change”, should it ever come to pass. But I’m not too excited about this proposal since cash shells are the least of AIM’s woes, imho. At least with a shell, you know exactly what you’ve got and you’re not going to fall for snake oil since there’s nothing to ramp. Some PIs play cash shells as a numbers game and that’s fair enough. The naive investors who get sucked in by the likes of Jimmy Liar Ellerton are very unlikely to be investing in shells. I suspect that most shell players treat them like wildcat wells, expecting to lose their money most of the time but come through occasionally with a multi-bagger.
More evidence of AIM’s new leaf is needed.