
Nominated Advisor (NOMAD)
A nominated advisor (NOMAD) is a financial services firm that assists with listing a company onto the Alternative Investment Market (AIM) of the London Stock Exchange (LSE). A nominated advisor (NOMAD) is a financial services firm that assists with listing a company onto the Alternative Investment Market (AIM) of the London Stock Exchange (LSE). 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. The LSE requires that a company seeking a listing on AIM have a NOMAD, which the LSE itself must approve to carry out the functions. A nominated advisor is a financial services firm that shepherds a company onto the LSE's Alternative Investment Market (AIM).

What Is a Nominated Advisor (NOMAD)?
A nominated advisor (NOMAD) is a financial services firm that assists with listing a company onto the Alternative Investment Market (AIM) of the London Stock Exchange (LSE). The Alternative Investment Market is a specialized unit of the LSE catering to smaller, more risky companies.
The LSE requires that a company seeking a listing on AIM have a NOMAD, which the LSE itself must approve to carry out the functions. Once listed on the AIM, the NOMAD oversees the company and ensures it follows regulations. NOMADs are thus seen as the regulatory system for the less-stringent AIM market and are tasked with advising companies both pre-IPO and after listing.





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 Qualifications
As of May 2021, there are 28 NOMADs approved by the LSE. The following are noted criteria for an entity to be considered a NOMAD:
Along 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 any and all financial documents required of it. Finally, the legal adviser takes care of any verifications of statements as well as providing direction and advice to the company's board members.
Related terms:
Alternative Investment Market (AIM)
The Alternative Investment Market (AIM) is the London Stock Exchange's global market for smaller and growing companies. read more
Board of Directors (B of D)
A board of directors (B of D) is a group of individuals elected to represent shareholders and establish and support the execution of management policies. read more
Broker and Example
A broker is an individual or firm that charges a fee or commission for executing buy and sell orders submitted by an investor. read more
Business Model , Types, & Examples
A business model is a company's core profit-making plan which defines the products or services it will sell, its target market, and any expected costs. read more
Capital : How It's Used & Main Types
Capital is a financial asset that usually comes with a cost. Here we discuss the four main types of capital: debt, equity, working, and trading. read more
Code of Ethics
A code of ethics encourages ethical conduct, business honesty, integrity, and best practices. Read about the types of codes of ethics with examples of each. read more
Corporate Finance
Corporate finance is the division of finance that deals with how corporations address funding sources, capital structuring, and investment decisions. read more
Fiduciary
A fiduciary is a person or organization that acts on behalf of a person or persons and is legally bound to act solely in their best interests. read more
Financial Advisor
What does a financial advisor do? Read our complete guide before hiring a financial advisor to ensure that you choose the best financial advisor for your specific needs. read more
Investment Advisers Act of 1940
The Investment Advisers Act of 1940 is a U.S. federal law that defines the role and responsibilities of an investment advisor/adviser. read more