Key facts
- 222 companies have delisted from London's AIM market in the last 20 years.
- Companies lose their listing if they cannot find a new nominated adviser within 30 days.
- The number of approved nomads has fallen to 23 from 68 in 2009.
- Increased compliance burdens are cited as the reason for the exodus of nomads.
- The London Stock Exchange updated nomad rules on June 4 to clarify responsibilities.
London's junior stock market, AIM, has seen 222 companies delist over the past two decades after losing their nominated adviser (nomad). This trend has prompted regulatory changes by the London Stock Exchange.
Companies are given 30 days to find a new nomad after losing their current one, or face delisting, which typically causes a sharp drop in share value. Figures from UHY Hacker Young indicate a significant decline in the number of available nomads, from 68 in 2009 to 23 currently, with a further drop from 30 in 2020. The firm attributes this exodus to an increased compliance burden on nomad firms, leading to substantial fines from the London Stock Exchange for regulatory breaches by their clients.
Colin Wright, chairman of UHY Hacker Young Group, stated that the "pendulum had swung too far in the direction of overregulation" and that the London Stock Exchange has begun to address this issue. The London Stock Exchange implemented updated nomad rules on June 4, clarifying that nomads are not responsible for ensuring a company's website complies with disclosure rules or for monitoring online commentary.
Wright believes that a larger community of nomad firms will encourage more IPOs on AIM. The market, which recently celebrated its 30th anniversary, has faced a backdrop of significant delistings. Chancellor Rachel Reeves previously impacted AIM shares by removing the inheritance tax exemption and reducing tax relief to 50%, effective from April 2026.