Key takeaways
Dual class shares now permitted on AIM
Founder-led businesses gain flexibility to retain control post-listing.
Greater flexibility for remuneration and acquisitions
Rule changes and derogations support talent attraction and deal-making.
Streamlined admissions and reporting options
Fast-track routes and relaxed financial disclosure aim to reduce friction.
Following extensive engagement with the AIM community, the London Stock Exchange (LSE) has published its Feedback Statement to the April 2025 Discussion Paper outlining the next steps for AIM’s evolution and making some immediate changes. Respondents strongly supported AIM’s role as a dynamic growth market and welcomed proposals to enhance its competitiveness and flexibility.
AIM is now refocusing on attracting entrepreneurial companies that are the exciting, innovative and visionary companies of the future and to this end the LSE is looking to make changes to the way AIM operates to support founder led businesses. In particular the LSE has identified a number of areas where it can immediately accept derogation requests, which it will consider on a case by basis, and/or change its existing guidance to meet the principles for change supported by respondents. These areas are set out below.
Key Immediate Changes
Dual Class Share Structures: AIM will now accept dual class share structures meeting current Main Market requirements, supporting founder-led businesses.
Director Remuneration: AIM Rule 13 will no longer apply to director remuneration provided the nominated adviser is satisfied contractual terms for remuneration (that is not part of the standard remuneration package) provide reasonable commercial protections for the company. This change enables greater flexibility for AIM Companies to attract top talent through competitive remuneration.
Acquisition Activity: to support acquisitions, AIM will consider derogation requests in the following circumstances:
for an acquisition to be a substantial transaction (pursuant to AIM Rule 12), where there is no fundamental change of business although AIM may require a shareholder vote
for alternative disclosure in the Admission Document instead of full Schedule Two requirements, where both parties to a reverse takeover are publicly traded companies
not to impose a suspension upon notification of a reverse takeover in contemplation, where it can be demonstrated that appropriate alternative disclosures can be made.
AIM Designated Markets (ADM) route: to attract international companies, AIM encourages nominated advisers who are working on any prospective ADM admissions to contact AIM Regulation for support in streamlining the work they undertake to ensure this provides a genuine fast-track route to market.
Financial Reporting: to address unnecessary friction, nominated advisers can request derogations to:
Incorporate historical financial information by reference provided that information is readily available to investors and will remain so on an ongoing basis
Use UK GAAP (FRS 102) for historical accounts rather than IFRS
To use other local accounting standards not on the current list on a case-by-case basis where equivalency to IFRS can be explained.
Admission of Second Lines of Securities: AIM will consider derogations to dispense with an Admission Document for second lines of securities.
These changes aim to deliver immediate benefits for AIM companies and investors while broader rule reforms are consulted on in 2026.
In the Feedback Statement, the LSE also sets out areas of development they will be focussing on which include considering changes they can make to secondary market and advancing proposals to digitise and re-evaluate the Admission Document.
For full details, please see the Feedback Statement.
