The London Stock Exchange (the Exchange) has privately censured and fined a nominated adviser (nomad) £75,000 for breaching rule 19 (quality of liaison with the Exchange) and rule 23 (failure to maintain correct procedures) of the AIM Rules for Nominated Advisers.
The AIM Regulation programme had undertaken a formal review to check compliance of the nomad’s work with the AIM rules. As a result of the review, AIM Regulation identified changes which were required to address certain issues and the nomad provided assurances that these would be implemented. The disciplinary action occurred as the nomad failed to implement the requested changes.
This case highlights the requirement for nomads to comply with the AIM rules particularly where they have provided assurances to AIM Regulation that changes will be implemented. The Exchange reiterated the importance of the role of the nomad in respect of maintaining the integrity and reputation of AIM.