The London Stock Exchange (LSE) has published amended AIM Rules for Nominated Advisers (Nomad Rules). The Nomad Rules set out the eligibility requirements, ongoing obligations and certain disciplinary matters in relation to nominated advisers (Nomads). The revised rules will come into effect on 30 July 2018.
- Additional eligibility criteria for Nomads to provide evidence to the LSE about their resources and that they are able to comply with the standards of conduct the LSE expects from Nomad firms when undertaking their responsibilities. Guidance on the new eligibility criteria will be set out in a revised NA1 (Nomad application form).
- A non-exhaustive list of matters that a Nomad firm must disclose to the LSE, which may affect its operation, role or the performance of its Nomad services.
- Setting out the supervisory actions the LSE can take in respect of a Nomad’s performance, including requiring a Nomad to undertake remedial action or imposing restrictions or limitations on the services a Nomad may provide.
- Empowering the LSE to require remedial action and/or restrictions in relation to a qualified executive (QE) at a Nomad firm, where issues of competency or training in relation to the QE arise.
- Extending the list of scenarios of when the LSE may place a Nomad firm under a moratorium, stopping it from acting as a Nomad to further AIM companies.
- Confirming that the LSE has jurisdiction over Nomads that were once, but are no longer, approved in relation to breaches or suspected breaches of the Nomad Rules they committed whilst they were approved.