Our Primary Markets Expert Group contributed to our response to London Stock Exchange's consultation on changes to the AIM Rules for Nominated Advisers.
Overall, while we did not disagree with the general sentiments of the proposed changes, we noted our concern that elements of the proposals either provided insufficient clarity for Nominated Advisers to effectively comply with the AIM Rules for Nominated Advisers, or placed a disproportionate burden on Nominated Advisers – particularly where they extend beyond that required of sponsor firms by the Financial Conduct Authority (FCA).
Regarding Criteria – Rule 2, we proposed that the new requirements should be reconsidered to ensure that Nominated Advisers do not face requirements which go beyond that required of sponsor firms. We added that the types of risk – which Nominated Advisers would be required to identify, assess, manage, monitor and control – should be clearly defined.
Regarding Overriding principle of the preservation of the reputation and/or integrity of AIM – Rule 3, we proposed that shareholders of Nominated Adviser firms should only be included in the general "detrimental to AIM" test, where it can be demonstrated that there is a clear potential risk of inappropriate influence over the Nominated Adviser function by the relevant shareholder(s).
Furthermore, we also suggested deleting the sentence stating that a Qualified Executive is neither an individual status nor a qualification.
We encouraged London Stock Exchange to liaise more closely with the Nominated Adviser community, so that any changes to the AIM Rules for Nominated Advisers could be made with confidence.
