AIM is the junior market for smaller and growing companies operated and regulated by the London Stock Exchange through its Regulated Investment Exchange status under Part XVII of the UK’s Financial Services & Markets Act 2000 (FSMA 2000). AIM therefore falls within the definition of a Prescribed Market under FSMA 2000 and is subject to the UK market abuse regime.
Under the directives that form the EU’s Financial Services Action Plan, AIM is not a Regulated Market but instead falls within the classification of a Multilateral Trading Facility (MTF) as defined under the Markets in Financial Instruments Directive 2004 (MiFID). Since its launch in 1995, more than 3,000 companies have joined AIM, raising more than £80 billion of investment capital to fund their growth, which made AIM the most successful growth market in the world.
AIM regulatory framework is designed so that the London Stock Exchange delegates certain regulatory responsibilities to the pre-approved nominated advisers (Nomads). The Nomads are responsible to the London Stock Exchange for assessing the appropriateness of an applicant for AIM, or an existing AIM company when appointed as its Nomad, and for advising and guiding an AIM company on its responsibilities under the AIM Rules for Companies (“AIM Rules”).
In May 2014, AIM Regulation published revised AIM Rules and AIM Rules for Nominated Advisers (“Nomad Rules”). The changes to the AIM Rules were mainly of an administrative and explanatory nature with a limited number of substantive changes. Changes to the Nomad Rules were more substantial and focused on eligibility rules on change of control and continuing eligibility of Qualified Executives.
How Duff & Phelps can help:
In light of the AIM regulatory framework, the compliance of a Nomad with the Nomad Rules is fundamental to the proper operation of the AIM market. As such, Nomads are expected to be able to demonstrate to AIM Regulation, amongst other things, that they act with due skill and care at all times, have adequate resources and have robust systems and controls in place in respect of:
Our team has many years of experience covering all aspects of regulation, and more recently AIM Regulation. We tailor our reviews to each client’s needs and you are guaranteed to receive hands-on, friendly and personal attention from our team throughout your engagement with us.
We offer the following services:
Independent review of your approach, systems, processes and controls to ensure compliance with the Nomad Rules
Identifying your Nomad Rules risks and gaps in your systems and controls environment
Undertaking a retrospective transactions review
Designing and implementing a focused, remedial action plan whilst taking a pragmatic approach