how a nominated advisor nomad works
the alternative investment market aim was established in 1995 by the london stock exchange to enable emerging growth companies to raise capital the aim is considered to be a submarket of the lse well over 3 500 such companies from around the world have taken advantage of the lower listing requirements offered by this alternative exchange however there is a rule that a company must retain the services of a nomad to help guide it through the aim listing process a nomad is a corporate finance advisor usually a boutique investment bank which conducts thorough due diligence for the suitability of an aim applicant for the exchange if satisfied with the company s business model financial and operating track record the competence of executives and directors and intended capital structure the nomad will assist the company in its preparation and application for admission to the aim if the company and nomad are successful in their efforts the nomad will continue to monitor its client this is a requirement of the lse the nomad must act as the regulator ensuring that the company complies with aim rules at all times the nomad also serves an ongoing role of providing advice on business operational or financial strategy companies must retain nomad services to help guide them through the aim listing process nomad qualificationsas of may 2022 there are 27 nomads approved by the lse 1 the following are noted criteria for an entity to be considered a nomad 2along with a nomad companies that want to join the aim should consider retaining a broker an accountant and a legal adviser brokers are also members of the lse and are required to be from the same firm as the nomad brokers are responsible to bring buyers and sellers together accountants are independent of the company and monitor the company s financials the accountant also helps the company prepare all financial documents required of it finally the legal adviser takes care of any verifications of statements as well as provides direction and advice to the company s board members 