What role does the Nomad play in relation to breaches of AIM rules?

The Nomad, or Nominated Advisor, plays a crucial role in maintaining compliance within the AIM (Alternative Investment Market) framework. Their primary responsibility is to ensure that the companies they advise adhere to the AIM rules and regulations. In the event of a breach of these rules, the Nomad is obligated to inform the exchange, specifically AIM, about the situation.

This duty is critical because it helps uphold market integrity and ensures that the relevant authorities are aware of any violations that could affect investors or the market at large. The Nomad serves as a key intermediary between the company and the exchange, providing guidance on compliance matters and facilitating communication during breaches.

Other options, while they may seem plausible, do not accurately represent the specific functions assigned to the Nomad under AIM rules. Rather than enforcing penalties or investigating breaches independently, the Nomad has a defined role focused on reporting to the exchange, which aligns with the regulatory structures in place to maintain orderly markets. Their relationship with the media is not a primary function in the context of regulatory breaches; the focus is predominantly on compliance reporting.