Merrill Lynch Seeks Presence On London's Alternative Investment Market

by Carla Johnson, Investors Offshore.com

26 April 2004

Investment Bank Merrill Lynch has applied to become a nominated advisor on London’s Alternative Investment Market, the small-cap division of the London Stock Exchange, according to a report from Reuters.

All AIM companies are required to have a nominated adviser (popularly known as a "nomad") who is responsible, amongst other duties, for warranting to the Exchange that a particular company is appropriate for the market.

Whilst blue chip investment banks are to be found amongst those acting as ‘nomads’ for AIM firms, small financial advisory and accounting firms are also represented.

Merrill Lynch has traditionally acted as an advisor to larger, more established firms. However, the report indicated that the bank is looking towards AIM to help give it more flexibility.

AIM is operated, regulated and promoted by the London Stock Exchange. Since the market opened its doors in 1995, more than 1,200 companies have been admitted, collectively raising more than US$14 billion, according to the LSE.

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