3. AIM Flashcards by Annie wood

Where is the info that must be in pre-admission announcement

Schedule 1

How well did you know this?

Not at all

Perfectly

When must application docs be sent

3 BD before admission

How well did you know this?

Not at all

Perfectly

What is the ‘tax advantage’ offered by admitting to trading on AIM

‘Unquoted’ for Tax Act

How well did you know this?

Not at all

Perfectly

What is the implication of the fact that AIM is not an RM (what provision)

85(2) FSMA - prospectus Test 2 will not apply

How well did you know this?

Not at all

Perfectly

ER benefit of AIM

Pay lower rate of CGT (10%) up to £10m if applies

How well did you know this?

Not at all

Perfectly

Where is the general duty of disclosure in admission doc

Schedule 2 para k

How well did you know this?

Not at all

Perfectly

When will ER apply

Shares in trading company + 5% shares held + office/employee; alternatively, assets used in business

How well did you know this?

Not at all

Perfectly

When is it possible to delay disclosure of price sensitive info under Rule 11

Impending development or matter in course of negotiation

How well did you know this?

Not at all

Perfectly

Who must be satisfied as to C’s eligibility for admission to AIM

NOMAD

How well did you know this?

Not at all

Perfectly

Two things broker ensures

Liquidity and safeguarding reputation of AIM - provides guaranteed market for purchase of shares

How well did you know this?

Not at all

Perfectly

What is the relationship between broker and C governed by

Placing Agreement

How well did you know this?

Not at all

Perfectly

What might happen to NOMAD if fails to comply w/ AIM Rules for NOMADs

Public censure/removal

How well did you know this?

Not at all

Perfectly

What Rule requires AIM C to have a website

How well did you know this?

Not at all

Perfectly

What is the main advantage of AIM

Less regulation

How well did you know this?

Not at all

Perfectly

When is lock-in required for AIM

Less than 2 years’ revenue earning

How well did you know this?

Not at all

Perfectly

What Rule requires disclosure of related party transactions

How well did you know this?

Not at all

Perfectly

When can an applicant use ‘fast track’ admission to AIM?

If ‘quoted applicant’

How well did you know this?

Not at all

Perfectly

What are ‘close periods’

Periods during which Ds and applicable employees cannot deal w/ their shares

How well did you know this?

Not at all

Perfectly

What Rule contains various miscellaneous and specific disclosures that must be made

How well did you know this?

Not at all

Perfectly

Who does Rule 21 apply to

Ds + applicable employees

How well did you know this?

Not at all

Perfectly

What shows AIM is potentially riskier than MM

High turnover of companies

How well did you know this?

Not at all

Perfectly

What does DTR 5.1 require

Notification of disposals/acquisitions of major shareholdings

How well did you know this?

Not at all

Perfectly

Is there a minimum market capitalisation for AIM

How well did you know this?

Not at all

Perfectly

What does Rule 17 require disclosure of re: its shareholdings

RIS to notify w/o delay of deals by significant Ms

How well did you know this?

Not at all

Perfectly

What is stage 4 of admission

Dealing notice

Where is there a separate ongoing disclosure O from Rule 11 for price-sensitive info

Article 17 MAR

What Rule requires broker

Two Rules on financial reporting as continuing O

Rule 18 + 19

Three application docs

App form, electronic copy of admission doc and NOMAD's declaration

What is the contents of the Admission doc per Schedule 2

Annex I - III w/ carve outs, plus additional info

What happens for Rule 13 if several transactions in last 12 months

Aggregate transactions (Rule 16)

What Rule gives NOMAD three tasks

What is the threshold for when related party transactions must be disclosed

If exceeds 5% in any class test + with RP

What Rule requires AIM C to have RIS to disseminate info

Average period for admission to AIM

12 - 16 weeks

After what period of suspended trading will admission be cancelled

6 months (Rule 41)

Where are the 'class tests' for Rule 12 and 13?

Schedule 3

Who is tied by the lock-in (if applicable)

Related parties or applicable employees

What are the NOMAD's 3 tasks

Determine if C appropriate, manage float and provide guidance

What is the implication under 19(1) FSMA for AIM being RIE

Exempt from 19(1) FSMA (**285(2)**)

Four tax benefits of AIM

CGT, IHT, SD and ER

Why does DTR 5.1 apply to AIM

'Issuer' includes C w/ shares on 'prescribed market' - e.g. AIM

What is a 'substantial transaction'

Exceeding 10% in any 'class test'

What market is AIM NOT (which MM is)

Regulated Market

Does the admission doc have to be approved by FCA?

What is an example of AIM designated market

NASDAQ

What still has to be produced, even if no prospectus required

Admission doc

CGT benefit of AIM

If transferring shares as **_gift_**, can holdover CGT

What is the process for pre-admission if fast track

Provide additional info + make pre-admission announcement 20 BD before admission

What two provisions require disclosure of deals by significant Ms

Rule 17 + DTR 5.1

How to make pre-admission announcement under AIM Rule 2

Provide info to exchange, who then publish via RNS

Cons of AIM (x6)

Riskier, NOMAD + broker, less liquidity, no market capitalisation, less prestige, lock-in

When must annual accounts be sent to Ms and under what two provisions

No later than 6 months after relevant period - Rule 19 + 442 CA

Powers of AIM Disiplinary Committee

Fine w/o limit, censure, cancel admission, and censure/remove NOMAD

What are related parties for Rule 13

Ds, substantial M, family, Ts etc

What provision requires dealing policy w/ Ds etc.

Rule 21

What is the importance of the Dealing Notice

Admission granted when LSE issues Dealing Notice

What Rule requires pre-admission announcement 10 days before

AIM Rule 2

When is the pre-admission stage for AIM - how many days before

Why is it not called listing for AIM

Bc not listing on Official List

Under what Rule is the dealing notice

Who are 'applicable employees' for Rule 21 and per what

Employees who are not Ds but discharging managerial responsibilities - 3(25) MAR

What two parties do AIM Rules require

NOMAD and broker

When to publish prospectus if being used + provision

6 working days before end of offer (PR 3.2.3R)

What is a 'quoted applicant'

Securities traded for 18 months on AIM designated market

Who has responsibility for admission doc, and under what Rule

Ds and company: Rule 31

What Rule requires that shares be freely transferable

IHT benefit of AIM

If held for 2 years, 100% IHT on death of AIM M

Where is info to disclose for Rule 12 + 13?

Schedule 4

What is the implication of having a less liquid market on AIM

Fewer investors to buy shares

What happens to C if ceases to have NOMAD

Suspend trading + admission cancelled if not replaced within 1 months

When can admission doc be published, if used

On day of admission

Is there a 'comply or explain' rule under QCA?

What provisionS cover contents of Admission doc

AIM Rule 3 + Schedule 2

What is the Committee who can discipline for breach of AIM Rules

AIM Executive Panel & Disciplinary Committee

When is the Placing Agreement signed in admitting to AIM

Evening of stage 3 - application docs

Rule that requires disclosure of substantial transactions

Pros of admitting to trading on AIM instead of MM

Less stringent Os, less disclosure, simpler CG, more flexible, tax advantages and no minimum shares in public hands

What is a 'significant M' for Rule 17

Person w/ 3% or more of shares

What does the general duty of disclosure under Schedule 2 para k reflect

87A(2) FSMA

Why will admitting to trading on AIM not usually require prospectus

85(2) doesn't apply, and only advertise to institutional investors so also exempt under 85(1)

What defines a 'Regulated Market'

FCA Handbook

What is the NOMAD's declaration

Confirms compliance w/ AIM Rules + eligible to admit

Must AIM C comply w/ CGC?

Can, but need not

What CG must AIM C comply w/

Quoted Cs Alliance

Do LR apply to AIM?

No - AIM Rules instead

What Rule requires AIM C to disclose details of CG

How does the requirement of having NOMAD + broker for AIM compare to sponsor on MM

For MM, only need sponsor at certain times - NOMAD and broker required at all times

What Rules apply to NOMADs

AIM Rules for NOMADs

Example of fewer disclosure requirements because on AIM instead of premium MM - financial

N/A 3-year trading history

Where is the info that must be included in pre-admission announcement

Schedule 1

What is a 'dealing policy'

Agreement w/ Ds and applicable employees for 'close periods' and clearance for dealing

What Rule requires general disclosure of price sensitive info on an ongoing basis

Rule 11

What Rule states lock-in if less than 2 years' revenue

AIM Rule 7

How long is the lock-in under AIM Rule 7

1 year

Under what Rule can trading be suspended

What DTR does Rule 17 on **significant Ms** reflect

DTR 5.1

What market is considered Regulated Investment Exchanges

AIM only

SD benefit of AIM

No SD since 2014

What is the con of no market capitalisation on AIM

Doesn't show real value of company

What is the third stage of admitting to AIM

Application docs

What Rule gives possible sanctions for breaching AIM Rules

What markets are Prescribed Markets

MM and AIM

Why would you wait to publish admission doc until day of admission

Minimises time for needing to publish supplementary

When is it not possible to delay disclosure of info under Rule 11 bc of e..g impending development or negotiations

If Article 17 MAR applies

What provision shows that AIM is RIE so exempt from **19(1)**

**285(2) FSMA**

What 2 provisions require disclosure of transactions by PDMRs and persons closely associated

**DTR 3.1** and **19 MAR**

What requires C to publish working capital statement in admission doc

Schedule 2 para c

3. AIM Flashcards

(108 cards)