9 March 2007
City defends AIM against comments by Securities and Exchange
Commissioner Roel Campos
Today (Friday) the City of London defended attacks on the LSE’s
AIM market by US Securities and Exchange Commissioner Roel
Campos.
The Lord Mayor of the City of London John Stuttard, who
regularly visits countries who use AIM, said:
"London's Alternative Investment Market (AIM) is successful
because it is appropriately and well regulated with a framework
that is disclosure-based and designed to create the right balance
for smaller and innovative companies from all over the world to
raise capital.
Michael Snyder, Chairman of the City of London's Policy and
Resources Committee, who recently met New York’s Mayor Bloomberg to
discuss London-New York issues, said: “I am surprised at these
comments, as they’re founded on false assumptions. AIM has shown
itself to be a sustainable market because it is increasingly
institutional with such investors now at 56% up from 40% a year
ago. More than 40% of money that has ever been raised on AIM has
been through further issues - a key indicator of a sustainable
market.
Both the Lord Mayor and the Policy Chairman sit on the
Chancellor’s High-Level City Competitiveness group working to
maintain and enhance the global position of UK-based financial
services.
A spokesperson for the City Corporation, which looks after the
Square Mile business district and promotes all UK-based financial
service, said: “The AIM admission document is quite similar to a
full listing prospectus. However, equity investment, especially in
new ventures, or in fast-growing countries, always carries an
element of risk but the potential for risk is balanced by the scope
for reward.
The spokesperson said: “AIM is a well-regulated market and those
advisers who introduced companies to it put their own reputation on
the line. Investors know that there is scope for loss as well as
profit in this market and its competitors. They invest with their
eyes open and AIM gives them a unique means of getting an exposure
to fast-growing markets, innovative products and new
technology.”
Ends
For more information, Contact Greg Williams, 020 7332 1455,
07889 167 205
Notes for editors
City of London Corporation:
The City of London Corporation is committed to maintaining and
enhancing the status of the wealth and tax-generating business of
the City as the world's leading international financial and
business centre through its policies and services. Examples are the
extensive overseas business missions on behalf of UK-based
financial services and the wide-ranging economic development,
research and regeneration effort the City of London Corporation
undertakes across London.It also runs the City Office in Brussels
on behalf of the City and City Representations in Beijing, Shenzhen
and Shanghai – and a City Office in Mumbai. Although the City of
London Corporation provides local government services for the City,
the financial and commercial heart of Britain, its responsibilities
also extend far beyond the City boundaries and include management
of the Barbican Centre, Central Criminal Court at the Old Bailey,
Epping Forest, Hampstead Heath, three wholesale food markets, as
well as acting as the London Port Health Authority – and running
the Animal Reception Centre at Heathrow.
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