AIM Notice 64

The London Stock Exchange (LSE) has published AIM Notice 64, introducing amendments to the AIM Rules for Companies and related AIM guidance. The changes are effective immediately from the date of publication (5 August 2026).

The amendments form part of the LSE’s review of the AIM regulatory framework and introduce changes in a number of areas, including:

• greater flexibility over the accounting frameworks available to certain AIM companies
• changes to corporate governance reporting requirements
• amendments relating to AIM admission, prospectus and other capital markets requirements

 

For existing AIM companies, the most significant changes are the ability for eligible UK incorporated companies to use UK GAAP and the removal of certain prescriptive corporate governance reporting requirements.
 

Key changes and implications

Greater flexibility over financial reporting frameworks

AIM Notice 64 amends the AIM Rules to allow eligible UK incorporated AIM companies to prepare their financial statements using UK Generally Accepted Accounting Practice (UK GAAP).

Previously, UK incorporated AIM companies were generally required to prepare their financial statements in accordance with UK-adopted International Accounting Standards.

What does this change mean for AIM companies?

The change provides eligible AIM companies with greater choice over their financial reporting framework. Companies currently reporting under IFRS may wish to consider whether UK GAAP provides a more appropriate and proportionate basis for financial reporting. Any change in the accounting framework applied requires prior approval of AIM Regulation. 

This may be particularly relevant for companies with:

• simpler group structures
• limited international operations
• no specific investor, financing or contractual requirements to report under IFRS

 

However, a change of accounting framework remains a significant decision. Companies considering a move to UK GAAP should assess the impact on:

• accounting policies and transition requirements
• comparative information
• key performance measures
• investor communications
• debt covenants and other contractual arrangements
• audit and reporting processes

 

The decision should also take account of the information needs of shareholders and other stakeholders, as well as any relevant contractual or financing requirements.

AIM companies considering a change in accounting framework should engage with their nominated adviser and other relevant advisers at an early stage.
 

Changes to corporate governance reporting requirements

AIM Notice 64 introduces greater flexibility in relation to corporate governance reporting.

Under the previous rules, AIM companies were required to identify a recognised corporate governance code and explain how they applied that code on a comply-or-explain basis. The revised rules remove this requirement. AIM companies are no longer required to adopt a particular recognised corporate governance code or to provide disclosures explaining compliance with, or departures from, such a code.

However, when considering their corporate governance arrangements, AIM companies should consider a recognised corporate governance code for guidance and to inform their approach.

The required disclosures include:

• Board composition: the names of the company’s directors, brief biographical details for each director (consistent with the type of information normally included in an admission document), and identification of those directors considered independent
• Board roles and responsibilities: details of the role, responsibilities and functions of each director in relation to delivering the company’s strategy, achieving its commercial objectives and effectively managing its risks
• Remuneration and performance: details of the structure and terms of executive and non-executive director remuneration, including how remuneration is aligned with individual and company performance and how performance is assessed
• Risk and control framework: details of any corporate governance committees established by the company and their respective roles and responsibilities
• Investor relations: details of the company’s approach to engagement with AIM shareholders

 

What does this change mean for AIM companies?

The revised requirements give AIM companies greater flexibility in determining governance arrangements that are proportionate to their size, complexity and circumstances. Companies are no longer required to adopt a particular recognised governance code or to explain how they comply with, or depart from, such a code.

However, companies should still consider a recognised corporate governance code when developing their governance arrangements and should ensure that their disclosures provide investors with sufficient information to understand how the board operates, how responsibilities are allocated and how key governance matters are overseen.

AIM companies should therefore review their existing corporate governance disclosures against the revised requirements and consider whether any changes are needed to reflect their current governance arrangements.
 

Additional half-yearly reporting requirement for extended accounting periods

AIM Notice 64 amends the AIM Rules relating to changes to an AIM company’s accounting reference date.

Previously, where a change of accounting reference date resulted in an extended accounting period greater than 15months, the AIM Rules required an additional half-yearly report to be published.

The revised rules provide greater flexibility. Where a change to an accounting reference date results in an extended accounting period, the company’s nominated adviser must contact the AIM Regulation to determine whether an additional half-yearly report, or alternative reporting (such as a trading update) is required.

This change removes the previous automatic approach and allows the reporting requirements to be considered on a case-by-case basis, taking into account the circumstances of the company and the interests of investors.

What does change this mean AIM companies?

Companies considering a change to their accounting reference date should engage with their nominated adviser at an early stage.

The change may provide greater flexibility over the reporting timetable, but companies should ensure that any revised reporting arrangements continue to provide investors with appropriate and timely information.
 

Other AIM Rule amendments

AIM Notice 64 also includes a number of broader changes to the AIM regulatory framework.

These include amendments relating to:

• AIM admission and eligibility requirements
• securities issues and prospectus-related requirements
• other listing-related matters
• associated AIM guidance

 

These changes may be particularly relevant to companies:

• preparing for an AIM admission
• undertaking a fundraising or securities issue
• completing significant transactions
• considering changes to their capital structure

 

Companies and advisers involved in capital markets activity should consider the revised requirements as part of transaction planning.
 

Find out more

AIM Notice 64:

• Confirmation of changes to the AIM Rules for Companies and AIM Disciplinary Procedures and Appeals Handbook
• AIM Rules for Companies - final rules

 

If you are an AIM company and would like to understand how the changes introduced by AIM Notice 64 may affect your financial reporting or corporate governance disclosures, please get in touch with Steve Ringham.