RE: Beaufort11 Mar 2018 17:32
Mess of Beaufort Securities raises wider questions about Aim
https://www.ft.com/content/0fb6cea2-22f3-11e8-ae48-60d3531b7d11
“Potential conflicts of interest already riddle the junior market. Nomads pay the LSE to operate. Companies pay fees to the Nomads that introduce them to Aim and vet and advise them on its workings and regulations.
Companies House asks all firms for details of “persons with significant control” owning more than 25 per cent. It also asks for information on loans. The FCA insists on approving stakes above 10 per cent in regulated financial services businesses. The LSE could do more, requiring additional public disclosure of persons or entities that might exert influence on a Nomad, whether via an equity stake or loans. Who or what for example is Lotus Capital Ventures Ltd, which, alongside Beaufort Securities, loaned NCP £250,000 in 2016? Names, addresses and identifying marks please.
Greater disclosure on who backs Aim operators could be one positive thing to come out of the Beaufort Securities mess. As the old saw goes, it is an ill wind that blows no good.”