Nominated Advisor (NOMAD) in 2025: Cost, Role, and Essential Qualifications

Adam Hayes, Ph.D., CFA, brings over 15 years of Wall Street expertise as a derivatives trader and financial writer. With advanced degrees in economics and sociology, Adam combines deep knowledge in behavioral finance and economic sociology. He holds CFA certification and FINRA licenses, currently researching and teaching at Hebrew University in Jerusalem.

What Is a Nominated Advisor (NOMAD)?

A Nominated Advisor, commonly known as a NOMAD, is a specialized financial services firm that helps companies list on the Alternative Investment Market (AIM) of the London Stock Exchange (LSE). AIM is designed for smaller, high-growth companies that seek a more flexible regulatory environment.

The LSE mandates that any company applying to AIM must appoint a NOMAD approved by the exchange. Post-listing, the NOMAD acts as a regulatory overseer, ensuring continuous compliance with AIM rules and providing strategic advice before and after the initial public offering (IPO).

Key Highlights

• NOMADs are corporate finance advisors, often boutique investment banks, guiding companies through AIM listing.
• Appointment of a NOMAD is compulsory for AIM listing as per LSE regulations.
• The NOMAD monitors and supports the company’s compliance and strategic decisions post-listing.
• Strict qualification criteria govern eligibility to become a NOMAD.

How Does a NOMAD Function?

Established in 1995, AIM offers emerging companies a platform to raise capital with less stringent requirements than the main market. To ensure investor protection and market integrity, companies must work with a NOMAD throughout the listing process.

A NOMAD conducts comprehensive due diligence, evaluating the company’s business model, financial history, management competence, and capital structure. If the assessment is favorable, the NOMAD supports the company’s application and admission to AIM.

Once listed, the NOMAD’s role continues as a regulatory guardian, ensuring ongoing adherence to AIM regulations and advising on operational and financial strategies.

Important Note

Engaging a NOMAD is mandatory for companies aiming to list on AIM, serving as both advisor and regulator.

Qualifications Required to Become a NOMAD

As of mid-2024, the LSE has approved 27 NOMADs. To qualify, firms must meet these criteria:

• Operate as a corporate entity (not an individual).
• Have at least two years of experience in corporate finance.
• Successfully advised on a minimum of three qualified transactions within two years.
• Employ at least four qualified executives.

Alongside a NOMAD, companies should also engage a broker, accountant, and legal adviser. Brokers, typically from the same firm as the NOMAD, facilitate market transactions. Independent accountants ensure financial transparency and prepare necessary documents. Legal advisers verify statements and guide the company’s board on compliance and governance.

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