Why the Quindell fiasco should not dent faith in the robust AIM market.5th January 2015
The AIM market, the London Stock Exchange’s junior market, has been subjected to an unprecedented level of criticism over recent weeks. The fiasco at Quindell, which saw another twist this week, as the company called in PwC to review its accounting practices, has seen blame apportioned to Aim itself, and those who regulate it.
In tandem, there is a fear that the bulge bracket banks are abandoning Aim and, in particular, shedding their “nominated adviser” or “nomad” status. Bank of America Merrill Lynch has withdrawn from its position as an Aim nomad, following the lead taken by UBS and Deutsche Bank. All this has sparked a debate over what exactly is wrong with the Aim market. In my view, however, the fears are misplaced. The Aim regulatory regime is not only rigorous, but the market will remain strong and continue to enjoy robust growth.
Marcus Stuttard, Head of AIM & Head of UK Primary Markets at the London Stock Exchange commented “It is always great to see users of the market publicly supporting and highlighting the long standing strengths of AIM. I hope your article encourages more members of the AIM community to follow your lead.”