In December 2016 the London Stock Exchange (LSE) reminded all
AIM companies about the need to liaise closely with their nomad
under AIM Rule 31. The LSE fined and privately censured an AIM
company £75,000 for breaching Rule 31 and not providing
necessary information to its nomad.
The fundamental purpose of AIM Rule 31 is to ensure that the
nomad is kept fully aware of developments and can fulfil its
regulatory role and responsibilities to the LSE, to advise and
guide the AIM company. In this instance the LSE found that the
Company failed to inform its nomad and seek advice regarding a
series of business developments. The LSE held it was not
appropriate for the company to decide whether or not the business
developments were disclosable based solely on its own assessment of
its obligations under the AIM Rules, without reference to its
The LSE also noted that:
the obligations to inform the nomad and seek advice regarding
business developments covered a wider range of developments than
would be required to be announced under AIM Rule 11;
it was not sufficient for the company to just send board
agendas and minutes to the nomad without any context or discussion;
contractual obligations between an AIM company and its nomad do
not override the Company's AIM Rules responsibilities.
The LSE noted it had "made clear, in a number of previous
published disciplinary actions and guidance, that appropriate
liaison between an AIM company and its nomad in accordance with AIM
Rule 31 is a fundamental tenet of the AIM Rules" and indicated
that it would continue to take formal disciplinary action where
Rule 31 is breached.
Aim companies and their nomads should ensure they have clear
channels of communication and regular dialogue on all developments
affecting the AIM company.
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