Why AIM LSE but not KLSE?

Peninsular Gold Limited was incorporated in April 2005 in Jersey (registration number:89895) and listed on AIM, London Stock Exchange on 23rd June 2005 (EPI code:PGL).

http://en.wikipedia.org/wiki/Alternative_Investment_Market

The Alternative Investment Market (AIM) is a sub-market of the London Stock Exchange, allowing smaller companies to float shares with a more flexible regulatory system than is applicable to the Main Market. The AIM was launched in 1995 and has raised almost £24 billion for more than 2,200 companies. Flexibility is provided by less regulation and no requirements for capitalization or number of shares issued. Some companies have since moved on to join the Main Market, although in the last few years, significantly more companies transferred from the Main Market to the AIM (The AIM has significant tax advantages for investors, as well as less regulatory burden for the companies themselves). In 2005, 40 companies moved directly from the Main Market to the AIM, while only two companies moved from the AIM to the Main Market.

The AIM has also started to become an international exchange, often due to its low-regulatory burden, especially in relation to the Sarbanes-Oxley Act (though only a quarter of AIM-listed companies would qualify to list on a U.S. stock exchange even prior to passage of the Sarbanes-Oxley Act). As of December 2005 over 270 foreign companies had been admitted to the Alternative Investment Market.

Criticism

"Casino" environment

In March 2007, U.S. securities regulator Roel Campos suggested that AIM's rules for share trading have created a market like a "casino". Campos reportedly said: "I'm concerned that 30% of issuers that list on AIM are gone in a year. That feels like a casino to me and I believe that investors will treat it as such." The comment resulted in several angry retorts, including one from the LSE, which controls AIM, pointing out that the number of companies that go into liquidation or administration in a year is actually fewer than 2%.

AIM has since issued new rules requiring that listed companies maintain a website.

Langbar International Limited Fraud

AIM has come under additional criticism for allowing Langbar International to be listed. At £375 million ($750m) Langbar is the biggest share fraud on the Exchange to date. It is presently being investigated by the Serious Fraud Office and the City of London Police. It was discovered in November 2005, that Langbar had none of the assets it declared at listing and this was due in part to the failure of the Nomad (Nominated Adviser) to carry out Due Diligence and the Exchange failing to ensure that the AIM rules had been complied with. After the fraud was uncovered, the AIM changed the rules for Nomads in 2006 and on 19 October 2007 they fined Nabarro Wells £250,000 ($512,500)"Historic Currency Conversion" DCERATES.com 19 October 2007, and publicly censured them for breaches of the AIM rules