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AIM Disciplinary Notice: Failure to provide Nomad with information

08/03/2017

At a glance

In December 2016, the AIM Disciplinary Committee (“ADC”) privately censured an AIM company and imposed a fine of £75,000 for failing to inform or seek their nominated adviser’s advice regarding a series of business developments.

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The ADC further held that 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 the nominated adviser.

It was further noted that:-

  1. An AIM company’s obligation to inform its nominated adviser and seek advice regarding business developments covered a wider range of developments than required to be announced under AIM Rule 11 (General disclosure of price sensitive information).
  2. It is not sufficient simply to send agendas and minutes of board meetings to its nominated adviser, without context or conversation, and assume that such actions discharged the company’s AIM Rule 31 responsibilities.
  3. Contractual obligations between an AIM company and its nominated adviser do not override the company’s AIM Rules responsibilities.

The notice underlines the importance of an AIM company’s AIM Rule 31 obligations to liaise with its nominated adviser.  In particular AIM Rule 31 should be narrowly interpreted and requires a company to provide full, timely and regular information to its nominated adviser.

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