Aquis Support Services: A step forward for growth companies?

The Aquis Stock Exchange has launched a consultation on its new Support Services offering, designed as an alternative to the traditional Corporate Adviser model for companies admitted to the Aquis Growth Market. This innovation aims to streamline regulatory support and reduce costs for early-stage businesses. But what are the real advantages and potential drawbacks?

Pros

1. Cost Efficiency:
   Aquis proposes lower fees for regulatory support, thanks to efficiencies in the admission process and a shift in responsibility to company boards. This could make listing on Aquis more attractive for growth companies with limited resources.
2. Streamlined Processes:
   The admission document requirements have been simplified, reducing disclosure burdens and administrative overhead. Companies only need two years of audited financials and concise strategy documentation, making the process less daunting.
3. Flexibility:
   Companies can choose between retaining a Corporate Adviser or using the new Support Services, which provides direct support from a nominated law firm. This flexibility allows businesses to select the model that best fits their needs and stage of development.
4. Regulatory Clarity:
   Aquis aligns its rules with existing regulations (such as MAR), avoiding duplication and confusion. The Support Services offering is designed to help companies navigate these requirements efficiently.
5. Competitive Benchmarking:
   By nominating preferred law firms and negotiating rates, Aquis aims to ensure high-quality, consistent service at a competitive price.

Cons

1. Potential Loss of Specialist Advice:
   While Support Services offer regulatory guidance, they are not intended to replace a company’s existing legal advisers. Some companies may miss the broader strategic input and market expertise that experienced Corporate Advisers provide.
2. Limited Scope:
   Support Services focus primarily on compliance and engagement with Aquis. Companies facing complex transactions or unusual circumstances may still need to engage a Corporate Adviser, potentially leading to additional costs.
3. Standardisation Risks:
   Relying on preferred law firms could result in a “one size fits all” approach, which may not suit every company’s unique needs or sector-specific challenges.
4. Uncertainty Around Fees:
   The fixed annual fee for Support Services is yet to be finalised. Until the benchmark is set, companies may be unsure about the true cost savings compared to the traditional model.
5. Ongoing Eligibility Requirements:
   The consultation proposes clarifying that eligibility criteria must be met continuously, not just at admission. This could increase the compliance burden for some companies.

Conclusion

The Aquis Support Services proposal represents a bold attempt to modernise regulatory support for growth companies. By offering flexibility, cost savings, and streamlined processes, it could make the Aquis Growth Market more accessible. However, companies should carefully consider whether the new model meets their specific needs, especially in terms of specialist advice and long-term compliance.

If you or your business require any assistance with tariff matters, please do not hesitate to contact Daniel Bellau, or any other member of the Corporate team.