The London Stock Exchange has issued guidance to resource sector companies listing on its Alternative Investment Market.

The guidance recommends that companies applying to join AIM from the mining and oil & gas sectors should include within their admission document an independently produced ‘Competent Persons Report’. It also sets out the exchange’s minimum expectations in relation to the content of the report and the professional experience and qualifications of the ‘competent person’ preparing the report.

In addition, given the technical nature of the resources sector, the rules guidance states that Nominated Advisers, when acting for mining, oil and gas companies, should ensure that they have access to suitably experienced and qualified individuals in order to be able to discharge their regulatory obligations to the exchange under the AIM rules.

At the end of February there was a total of 232 companies from the mining, oil and gas sectors quoted on AIM, out of a total of 1,430 companies on the market. This includes numerous Canadian firms.

“This is a prudent step in the evolution of the AIM Rules,” said Martin Graham, director of market services and head of AIM. “It takes into account the sector specific challenges of mining, oil and gas companies, whilst maintaining AIM’s core ethos as a market for dynamic, growing companies. These changes codify best practice already carried out by a number of AIM companies and are designed to increase the quality and quantity of information available to investors.”

The exchange says that the guidance has been issued following extensive consultation with industry experts and members of the AIM community and codifies current best practices.