Calls for changes to the London Stock Exchange have been made by an asset management firm amid claims it is in decline.
Fundamental Asset Management has written to the LSE with a number of recommendations to “enhance the appeal, efficiency and transparency” of the London stock market.
The letter, written by Fundamental co-founder Chris Boxall, paid particular attention to the success of companies in the Alternative Investment Market.
It called on the LSE to run a marketing campaign highlighting the success of companies on Aim.
Boxall also wants to see a cap on Aim fees. He said: “Entrepreneurs and founders baulk at the high fees being levied on their creations by city advisers.
“The latter subsequently offer little real support following admission, notably to retail investors.”
The third recommendation raised by Boxall was to limit the number of non-executive directorships held by Aim directors.
Finally, the firm wants to see a kite-mark for LSE approved ‘independent’ research providers introduced, along with a centralised hub for the publication of such independent research.
Boxall added: “These recommendations are essential for the continued growth and integrity of not only Aim but the London Stock Exchange as a whole.
“By implementing these measures, the LSE can enhance its reputation as a forward-thinking exchange that supports both companies and investors now and in the future.
“This will encourage more investors to put their money into the LSE which in-turn will make it more appealing for companies to stay on the exchange as well as for other companies to join it.”
The London Stock Exchange was contacted for comment.
tara.o'connor@ft.com
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