On December 21, 2011, the London Stock Exchange announced that the disciplinary committee of its Alternative Investment Market (AIM) had imposed a fine of £400,000 (approximately $620,000) and a public censure on Seymour Pierce, a nominated advisor (NOMAD) for breaches of the AIM rules applicable to NOMADs.

AIM said that Seymour Pierce had failed to meet the standards required of a nominated adviser in relation to two client companies. In one case it failed to provide proper advice and guidance to its AIM listed client in relation to the company’s obligation to inform the market promptly of material changes in its financial situation. In the other case it failed to carry out proper due diligence on a company planning to list on AIM.

Nilam Statham, Head of AIM Regulation said: “The role of the NOMAD is central to AIM’s regulatory framework. NOMADs have key responsibilities, both in terms of assessing the suitability of companies for the public market and in properly advising and guiding companies once admitted to AIM.”

Half of the fine is payable immediately, half is suspended and will be payable if at any time in the next 24 months Seymour Pierce’s performance falls materially below the standard required of it as a NOMAD.

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