Nominated Advisers (Nomads)

Aside from 11)________ in regards to regulatory compliance, the Exchange also mandates continuous oversight and advice by the 12)________, referred to as a Nominated Adviser (Nomad). The role of Nomads is central to AIM’s regulatory model, as these 13)________ play the role of gatekeepers, advisers and regulators of AIM companies. In advising each firm as to which rules should be complied with and the manner in which existing requirements should be met, Nomads provide the essential service of allowing firms to abide by 14)________, reducing regulatory costs in the process. Theoretically, Nomads are liable for damages from tolerating misdemeanors on behalf of their supervised companies, including the loss of reputational capital. However, this 15)________ Nomads has been criticized as creating a conflict of interest, since 16)________ receive fees from the companies they purportedly supervise while, in practice, managing to avoid liability for market misconduct.

In 2006, the London Stock Exchange launched a review of Nomad activities, resulting in a regulatory “handbook” for Nomads published by the Financial Services Authority in 2007.

Ex.8. Read through additional information about AIM. Write out key words and phrases and translate them into English. Use specialized dictionaries. Render the text in English based on your notes (key words and phrases).