IR Society responds to LSE Discussion Paper on Shaping the Future of AIM
The Investor Relations Society has responded to the LSE's discussion paper on Shaping the Future of AIM. The Society has a growing number of AIM-listed Members, and we have set out below our general, high-level comments on those aspects of most relevance to our Members. In summary, the IR Society supports the London Stock Exchange's proposals to reduce regulatory burdens and costs for AIM companies. These initiatives have the potential to foster a thriving and more dynamic market that can attract and retain growth-oriented businesses than at present.
Kerry Goodwin
Director - Primary Markets and AIM Regulation
London Stock Exchange
By email: kerry.goodwin@lseg.com
20th June 2025
Dear Ms Goodwin,
Re: Discussion Paper – Shaping the Future of AIM
Thank you for giving us the opportunity to respond to your discussion paper on Shaping the Future of AIM. This response is made on behalf of The Investor Relations Society (‘the IR Society’).
The IR Society represents Members working for publicly listed companies and investor relations focused service providers, to assist them in the development of effective two-way communication with the markets. It has approaching 800 Members, drawn mainly from the UK, including the majority of the UK FTSE 100, many of the FTSE 250 constituents and some from AIM-listed companies, as well as those listed overseas. The IR Society seeks to represent all equity issuers including smaller cap issuers on AIM, given they form an important pipeline for the capital markets and thus also for our membership.
The IR Society’s mission is to promote best practice in investor relations; to support the professional development of its Members; to represent their views to regulatory bodies, the investment community and Government; and to act as a forum for issuers and the investment community.
Our response has therefore been primarily constructed through the lens of a corporate issuer, and as such reflects the views of those very much at the ‘coal face’ of investor engagement and reporting.
The IR Society has a growing number of AIM-listed Members, and we have set out below our general, high-level comments on those aspects of most relevance to our Members. In summary, the IR Society supports the London Stock Exchange's proposals to reduce regulatory burdens and costs for AIM companies. These initiatives have the potential to foster a thriving and more dynamic market that can attract and retain growth-oriented businesses than at present.
The key reasons for our support are set out overleaf:
Enhancing Market Accessibility:
We would support actions to simplify admission documents and reducing duplicative requirements, where these would lower entry barriers and costs for new companies looking to enter the market. AIM would benefit from being more accessible to a broader range of businesses and is an important first step for many on their journey to the main market.
Reducing Costs:
The costs that small- to mid-sized companies are having to absorb to maintain a listing on AIM are disproportionate. We would propose streamlining the role of nominated advisers, and we believe easing corporate governance requirements may significantly reduce ongoing compliance costs for AIM-listed companies, while still ensuring the appropriate guard-rails for a London-listed corporate. This will then allow them to allocate more resources towards growth and innovation. We are supportive of the Quoted Companies Alliance’s (QCA) views and their response to Q6 in your discussion paper around cost and friction.
Supporting International Growth:
We support the proposal to permit a wider set of local accounting standards and simplifying reverse takeover rules. We believe this may make AIM more attractive to international companies and foster a more diverse and vibrant market.
Encouraging Investment:
We support the view that enhancing fiscal incentives and supporting initiatives like the Mansion House Compact may drive more investment into AIM companies. We also support the QCA’s request for the Government to create more awareness around the Mansion House Accord, specifically that quoted shares qualify as part of the initiative as well as promoting the benefits of investment in AIM. Such initiatives would help provide them with the capital needed to scale and succeed. We believe this will also improve the attractiveness of the UK as a place to start and scale-up and build a strong pipeline of firms eligible to publicly list in the future.
Further to our response to the FCA’s consultation on The Value for Money Framework in 2024, we recognise AIM companies are an important part of the ‘growth escalator’ for UK capital markets and support transparency and visibility of fund investment in these issuer companies separately from unlisted equity. Transparency of quoted and unlisted equities will not only be of interest to pension fund savers but also help facilitate investor targeting for AIM companies.
Regarding further initiatives that could be considered to enhance liquidity in the trading of AIM securities, The Society views investment research as an important part of an efficient market, and we are therefore supportive of measures that will increase the amount, breadth and quality of research. As per our response in 2024 to the FCA’s consultation on Payment Optionality for Investment Research The IR Society supports increased payment optionality as this could lead to increased/improved quality of coverage for small- and mid-caps, and there may also be more tangible benefits for smaller active fund managers.
By implementing these proposals, the AIM market has the potential to become more competitive, efficient, and appealing to both companies and investors.
We hope you find these comments useful. Please do not hesitate to make contact if you have any questions.
Yours faithfully,
Liz Cole
Head of Policy and Communications, The Investor Relations Society
(Email: enquiries@irsociety.org.uk, Tel: + 44 (0) 20 3978 1980)
Laura Hayter
Chief Executive Officer, The Investor Relations Society
(Email: enquiries@irsociety.org.uk, Tel: + 44 (0) 20 3978 1980)
Ross Hawley
Chair of the Policy Committee, The Investor Relations Society
(Email: enquiries@irsociety.org.uk, Tel: + 44 (0) 20 3978 1980)
Published 20 June, 2025