What authority must a broker have to support trading of a company's shares on AIM?

For a broker to support the trading of a company's shares on the Alternative Investment Market (AIM), it is essential for the broker to be authorized by the Financial Conduct Authority (FCA). This authorization ensures that the broker complies with regulatory standards and has the qualifications needed to operate within the UK financial markets. The FCA regulates financial activities to protect consumers and maintain the integrity of the financial system, which is especially important in a market like AIM, where companies may be smaller and riskier.

Holding FCA authorization indicates that the broker has met the necessary requirements to conduct trading activities and provides a level of assurance both to the company and investors that the broker adheres to the appropriate conduct rules and ethical standards in its operations. This regulatory oversight is crucial for maintaining investor confidence and ensuring a fair and orderly market.

In contrast, other options either do not encompass the necessary regulatory requirement or pertain to operational or structural aspects of the broker rather than direct regulatory empowerment to facilitate trading activities on AIM.