How AIM Works
AIM Nominated Adviser
The Alternative Investment Market (AIM) of the London Stock Exchange (LSE) is characterized as a market with a moderate and balanced regulatory regime that is effectively enforced by one of the company’s professional advisers, the Nominated Adviser or “Nomad”. This regulatory regime is unique in that the Nominated Adviser owes its sole duty to the London Stock Exchange but is selected and compensated by the London AIM-listed company. The Nominated Advisers are generally boutique investment banks or other professional firms, ranging in size from 10 to 200 employees.
All London AIM-listed companies must have a Nominated Adviser at all times. In the first instance, the Nominated Adviser is responsible for determining the suitability of companies seeking a listing on London’s AIM, regardless of whether or not an IPO will occur in connection with listing, and guiding the company through the AIM IPO process. In terms of suitability, the Nominated Advisers will consider:
- If the company / business opportunity qualifies as a “growth company / opportunity”
- Track record of executive management and suitability to run a London AIM-listed company
- Breadth, depth and experience of the company’s board of directors
- Goals of the business over the short, medium and long term
- Financial, operating and capital raising history of the company, if any
- Capital raising and infrastructure plans for life as a London AIM-listed company
The Nominated Adviser, in its sole discretion, determines whether or not a company is suitable for listing on London's AIM. The ideal company would be one that is pursuing a strategy of aggressive growth with a solid executive management team and board of directors and well thought out operational and financial plans.
On an on-going basis, the Nominated Adviser will ensure that the London AIM-listed company is complying with the AIM Rules, review and advise on the nature and form of London AIM regulatory announcements and provide advice on business strategies and general market conditions.
There are 40 firms in London that act as Nominated Advisers, however, there are often vast differences between the firms. Most Nominated Advisers focus on certain industries (sectors) of the market in which they have developed particular expertise and/or Nominated Advisers focus by size of company in terms of current or expected market capitalisation.