Nomads’ rule-book set for release

Stock Exchange
watchdogs are preparing to release the eagerly-awaited AIM
rule book which is expected to hold the market’s nominated advisers to a tougher
raft of regulations.  

The move has been made in a bid to ensure greater accountability in the
junior exchange with the release of the prescribed list of rules for the
market. Nomads will now be under greater pressure to ensure that comprehensive
due dilligence is carried out as part of the requirements.  

Other demands include strict background checks on executive board members and
fact-finding missions to HQ’s of overseas companies,
The Times
reported. At present AIM has no defined rule book, preferring to rely on the
nomads to maintain standards.  

The bulk of nomads have backed the initiative, arguing that these are
safeguards that are automatically undertaken by advisers discharging their
duties adequately, the only difference being that the rule book avoids any
potential grey areas by setting out the demands on paper.  

Further reading:

Aim targets nominated advisers 

Advisers get ready for policy shift as LSE
tightens regulation

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