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Private censure and fine for breach of Nomad Rules

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United Kingdom

The London Stock Exchange has privately censured a nominated adviser and fined it £75,000 for breaches of the AIM Rules for Nominated Advisers.

On 17 September 2015, the London Stock Exchange announced that a nominated adviser (nomad) has been privately censured and fined £75,000 for breaches of rules 19 (liaison with the Exchange) and 23 (proper procedures) of the AIM Rules for Nominated Advisers (Nomad Rules). Pursuant to Nomad Rule 26, AIM Regulation undertakes a continuing programme of visits to all nomads to review the compliance of their work with their duties under the Nomad Rules.  As a result of its review, AIM Regulation provided guidance and made a number of recommendations in respect of the nomad's procedures. The nomad agreed that it would implement changes to address the issues identified. Unfortunately, little progress had been made in implementing the agreed changes.

In its disciplinary notice, the Exchange emphasised the importance of AIM Regulation being able to rely upon assurances provided by a nomad regarding the implementation of any changes the firm has proposed to make to address any issues identified by the review. Failure to implement agreed changes is unacceptable to the Exchange given the importance of the role of the nomad in respect of maintaining the integrity and reputation of AIM. In determining the sanction, the Exchange took into account a number of factors including the nomad’s subsequent progress in implementing the agreed changes, and the nomad’s co-operation with the Exchange’s investigation and disciplinary action.

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