What is the institution of the Nominated Adviser?
The institution of the Nominated Adviser is a unique feature of the Xtend market. These market players, on the one hand, provide support to issuers during admission and continued trading and, on the other, continuously monitor the companies. Their presence greatly increases the security of the market and in this way they also serve investors’ interests.
Who can apply to become Nominated Advisers?
In order to become a Nominated Adviser, a company must meet the following criteria:
a) be a firm or company (sole traders and private individuals cannot become Nominated Advisers);
b) maintain an employment relationship or a long-term agency relationship with at least two Qualified Persons who
i. have at least five years of professional experience in organising the initial public offering of securities, or experience related to structuring and organising public or private capital market transactions, as well as related company assessments, financial due diligence or equity transactions, and
ii. as investors or as owners, executives or senior officers of the entity making the investment, or as consultants (except in the case of legal, accountancy and tax consultancy activities), have directly participated in a leading role in a public or private capital market transaction in the preceding five-year period, or in structuring and organising public or private capital market transactions, as well as related company assessments, financial due diligence or equity transactions, and
iii. have no criminal record and are not prohibited from exercising professional activities, and iv. no sanctions or fines have been imposed on them in relation to their activities as set out in Subsection ii) in the preceding five years.
c) maintain an employment relationship or a long-term agency relationship with two persons not qualifying as a Qualified Person, who have at least two years of experience in the fields specified in Subsection c) i) above, and also comply with the provisions of Subsections c) iii) and iv).
What are the tasks of Nominated Advisers?
Issuers must enter into a contract with a Nominated Adviser in order to list their shares on BSE Xtend, and must also maintain a contractual relationship with a Nominated Adviser during continued trading. In exchange, Nominated Advisers contribute to compiling the admission document, and also provide continuous assistance to companies in fulfilling their stock exchange obligations. In addition, Nominated Advisers are also required to provide information to the market operator on the capital market activities of the issuers supported by them, and are also required to notify the BSE in the event of any infringement impacting the market presence of the issuer.
What are Nominated Advisers liable for?
Nominated Advisers are liable for:
a) advice given on compliance with the rules of the MTF,
b) the compliant performance of Nominated Adviser activity as set out in the BSE Xtend regulations,
c) failing to fulfil their reporting obligations to the market operator (e.g. in the event of a violation of an obligation by the issuer, of which the Nominated Adviser was aware).