The Alternative Investment Market (AIM) is a sub-market of the London Stock Exchange, allowing smaller companies to float shares within a more flexible and less regulated regime.
The ISDX Market is a specialist British market, formerly known as PLUS and OFEX. It is not part of the London Stock Exchange and has a lower profile than AIM, but offers a competitively priced exchange for small cap companies.
The Advantages of using an Isle of Man Vehicle to access the Markets
Regarding the provision of non-UK top 100 AIM companies, research by Hemscott in 2011, noted the Isle of Man retained its first place position, with 50 Isle of Man AIM listed companies and a market share of 18.6%, (up from 16.3% in 2010). This evidence supports the fact that a growing number of non UK companies, looking for admission to ISDX or AIM, are recognising the advantages of using an Isle of Man vehicle to access the Markets. These benefits can be summarised as follows:
- The Island’s recognition as one of the best regulated offshore financial centres, supported by its AAA rating.
- The Island represents a tax neutral platform, with its zero rate corporation tax, no capital gains tax, stamp duty or withholding tax and the ability to roll up profits offshore. This removes any extra layers of taxation above the investor’s own tax regime.
- A competitively priced, long established and well-regulated infrastructure for the provision of corporate administration services.
- A world-class telecoms infrastructure.
- The Island’s VAT principles are fundamentally the same as in the UK.
- A common law legal system, as with the UK, which assists with keeping deal administration and legal costs down.
- Credit security concepts are the same in the Isle of Man, as in the UK, so London-based banks and their lawyers are comfortable dealing with Isle of Man companies
- An Isle of Man public limited company is not a regulated entity in the Isle of Man and the administration of such a company is not regulated as fund administration. So there are no fund regulation considerations regarding closed ended investment companies.
- It is an English-speaking jurisdiction, in the same time zone as London, and conveniently located only an hour’s flight from The City of London
- The senior members of Cavendish Trust Company have considerable expertise and practical experience in all matters associated with establishment, IPO and subsequent administration of ISDX Market and AIM companies within the regulatory requirements.
Please contact the following members of our team with any ISDX Market or AIM enquiries:
James Cunningham-Davis – Email: jcd@cavendishtrust.com
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London Stock Exchange Official Publication November 2012 – AIM Companies
