What happens if a company violates AIM's rules?

If a company violates AIM's rules, it is indeed the responsibility of the NOMAD (Nominated Adviser) to inform the exchange of any rule breaches. This is a crucial role that ensures compliance with AIM regulations, which are essential for maintaining standards and protecting investors in the market. The NOMAD acts as a regulatory intermediary between the company and the exchange, helping to uphold governance and oversight.

The process initiated by the NOMAD allows for the appropriate regulatory actions to be taken. It may involve further inquiries, potential sanctions, or remediation steps for the company to address the violations. This mechanism is essential for maintaining the integrity of the market and preventing misuse or mismanagement of listed companies.

While other options might reflect concerns that arise due to violations, they do not accurately capture the immediate procedural response according to AIM regulations. The ceasing of operations, delisting of shares, or reviews by auditors could occur as consequences of serious or ongoing violations but are not the primary or immediate actions taken in response to rule breaches. Hence, the requirement for the NOMAD to inform the exchange is a key component of enforcement and regulatory compliance within the AIM framework.