CLLS & Law Society Response to London Stock Exchange Discussion Paper - Shaping the Future of AIM

We support the drive to reframe AIM, seeking to ensure that it remains a core part of UK capital markets. However, whilst regulatory adjustments may result in improving certain aspects of AIM (including cost reduction, investor confidence, reducing friction in growth events and making the rules more internationally competitive), the lack of liquidity is a deeper issue tied to the market’s fundamental characteristics and the wider debate around government policy on the broader UK capital markets ecosystem.

Against a background of the need for liquidity, and on the assumption that measures to improve liquidity will be forthcoming, we believe that the outcome of this Discussion Paper should also focus on maintaining a proportionate regulatory framework to ensure private companies understand the merits of joining the market and investors trust its integrity.