The London Stock Exchange (the “Exchange”) has issued AIM Notice 51, in which it is consulting on proposed amendments to the AIM Rules for Nominated Advisers (or nomads).
The proposed changes include the following:
- Firms wishing to become or continue to serve as a nomad would need to satisfy new, additional eligibility criteria. These include demonstrating “appropriate financial and non-financial resources” and “adequate risk management systems”.
- The Exchange would be able to refuse approval to a prospective nomad if it feels the applicant (or any of its shareholders or officers) might be detrimental to the reputation or integrity of AIM. This could be the case even if the applicant satisfies all of the other eligibility criteria.
- The rules would clarify which events a nomad is required to report to the Exchange. These would now include the commencement of any investigation or disciplinary proceedings relating to the nomad or its employees.
- A new rule would allow the Exchange to take steps to address poor nomad performance, including requiring remedial action, imposing restrictions or limitations on nomad services, and suspending individual employees’ approvals.
The Exchange has asked for comments by 25 May 2018.