London Stock Exchange fines leading broker Seymour Pierce £400,000 for breaches of the Nomad Rules
Seymour Pierce, which acts as Nomad for more AIM companies than any other broker, has today been fined £400,000 for breaches of the AIM Rules for Nominated Advisers. This is the largest ever fine imposed on a Nomad. As summarised in the London Stock Exchange’s press release:
“The London Stock Exchange found Seymour Pierce had failed to meet the standards required of a Nomad in two key areas:
· Seymour Pierce did not provide proper advice and guidance to an AIM company in respect of its obligations to make announcements without delay, specifically relating to its changing financial situation and liabilities; and
· Seymour Pierce did not satisfy its obligation to the London Stock Exchange to undertake adequate due diligence and to properly assess the appropriateness of a company seeking admission to AIM.”
The two matters described above are separate and relate to Seymour Pierce’s interactions with two different companies, one already on AIM and one that was aspiring to join AIM. Here is the full Public Censure and Fine notice.
£200,000 of the £400,000 fine is payable immediately and £200,000 ”will be payable in the event that Seymour Pierce’s performance falls materially below the standard required of it as a Nomad within the next 24 months”.
The largest fine handed out to a Nomad before this was the £250,000 penalty imposed on Nabarro Wells in 2007.
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