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47-538: FOGL was listed on the Alternative Investment Market of the London Stock Exchange . The company issued an initial public offering on 14 October 2004, debuting at a price of 40p. By 2010, FOGL estimated that its four best prospects could contain 8 billion barrels (1.3 billion cubic metres), with up to 60 billion barrels (9.5 billion cubic metres) in total in all sectors off the coasts of

94-423: A FTSE listing. This may prove to be hazardous for unsophisticated investors who lack both the knowledge and resources to conduct proper inquiries into a firm's prospects and activities, or even larger investors which lack strong internal control and risk management requirements. As a consequence, AIM's investor base is largely composed of institutional investors and wealthy individuals. The following table lists

141-515: A joint venture between the Tokyo Stock Exchange and LSE . Tokyo AIM will replicate AIM's system of oversight by NOMADs, with 'J-Nomads' being "selected and approved by TOKYO AIM ... to assess companies' suitability for the market". In July 2012, TOKYO AIM changed its name to TOKYO PRO Market , and since then Tokyo Stock Exchange, Inc. has continued to operate TOKYO AIM based on the original market concept. As of 1 October 2018, just under

188-410: A moral hazard, the consequences of the customer's actions are insured, making the customer more likely to take costly actions. For example, bedbugs are typically excluded from homeowners' insurance to avoid paying for the consequence of recklessly bringing in a used mattress. Insured events are generally those outside the control of the customer, for example in life insurance, death by automobile accident

235-464: A person's popularity / likability and so on, with the premise being that people scoring high on these parameters are less likely to default on a loan. However, this area is still vastly subjective. Insurance underwriters evaluate the risk and exposures of potential clients. They decide how much coverage the client should receive, how much they should pay for it, and whether to accept the risk. Underwriting involves measuring risk exposure and determining

282-417: A portion of the security issue, and typically resell securities from that portion to the public. Underwriters make their profit from the price difference (called " underwriting spread ") between the price they pay the issuer and what they collect from buyers or from broker-dealers who buy portions of the offering. The services provided in the process of underwriting include: Once the underwriting agreement

329-434: A replacement to the previous Unlisted Securities Market (USM) that had been in operation since 1980. It allows companies that are smaller, less-developed, or want/need a more flexible approach to governance to float shares with a more flexible regulatory system than is applicable on the main market. At launch, AIM comprised only 10 companies valued collectively at £82.2 million. As at May 2021, 821 companies comprised

376-639: A third of AIM-listed companies have paid shareholders a dividend within their most recent financial year. The largest companies to have paid dividends include: Fevertree Drinks PLC (FEVR) , Burford Capital Ltd (BUR) , and Abcam PLC (ABC) . The smallest companies to have paid dividends include: Holders Technology PLC (HDT), Aeorema Communications PLC (AEO), and Stilo International (STL). Underwriter Underwriting ( UW ) services are provided by some large financial institutions , such as banks, insurance companies and investment houses, whereby they guarantee payment in case of damage or financial loss and accept

423-438: Is carried out through separate holding-company affiliates, called securities affiliates or Section 20 affiliates. Of late, the discourse on underwriting has been dominated by the advent of machine learning in this space. These profound technological innovations are altering the way traditional underwriting scorecards have been built, and are displacing human underwriters with automation. Natural language understanding allows

470-526: Is clear. The Hydrocarbons Law (Law No 26.659) enacted by the government of Argentina does not apply to the Falkland Islands or its surrounding waters, and is therefore unlawful. Any attempts to enforce Argentine domestic legislation in relation to the Falkland Islands continental shelf are an unlawful assertion of extraterritorial jurisdiction. As such, Argentina's action is contrary to the UN Convention of

517-408: Is often provided by reinsurers , who of course have an interest in accepting risks on appropriate terms. Continuous underwriting is the process in which the risks involved in insuring people or assets are being evaluated and analyzed on a continuous basis. It evolved from the traditional underwriting, in which the risks only get assessed before the policy is signed or renewed. Continuous underwriting

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564-440: Is often seen in initial public offerings (IPOs), where investment banks help a corporation raise funds from the public. The underwriter is obligated to purchase the entire issue at a predetermined price before reselling the securities in the market. Should they not be able to find buyers, they will have to hold some securities themselves. To reduce the risk, they may form a syndicate with other investment banks. Each bank will buy

611-409: Is struck, the underwriter bears the risk of being unable to sell the underlying securities, and the cost of holding them on its books until such time in the future that they may be favorably sold. If the instrument is desirable, the underwriter and the securities issuer may choose to enter into an exclusivity agreement. In exchange for a higher price paid upfront to the issuer, or other favorable terms,

658-444: Is the detailed credit analysis preceding the granting of a loan , based on credit information furnished by the borrower; such underwriting falls into several areas: Underwriting can also refer to the purchase of corporate bonds , commercial paper , government securities, municipal general-obligation bonds by a commercial bank or dealer bank for its own account or for resale to investors. Bank underwriting of corporate securities

705-399: Is the process by which investment banks raise investment capital from buyers on behalf of corporations and governments by issuing securities (such as stocks or bonds ). As an underwriter, the investment bank guarantees a price for these securities, facilitates the issuance of the securities, and then sells them to the public (or retains them for their own proprietary account). This process

752-475: Is typically covered, but death by suicide is typically not covered. Correlated losses are those that can affect a large number of customers at the same time, thus potentially bankrupting the insurance company. This is why typical homeowner's policies cover damage from fire or falling trees (usually affecting an individual house), but not floods or earthquakes (which affect many houses at the same time). For all types of insurance underwriting, advice and assistance

799-500: Is typically justified as the reward for the underwriter for taking on the market risk, is occasionally criticized as unethical, such as the allegations that investment banker Frank Quattrone acted improperly in doling out hot IPO stock during the dot-com bubble . In an attempt to capture more of the value of their securities for themselves, issuing companies are increasingly turning to alternative vehicles for going public, such as direct listings and SPACs . In banking , underwriting

846-508: Is well documented that Argentina claims sovereignty over the Falkland Islands and the surrounding maritime areas. The Argentine government has recently stated that it intends to take legal action against companies and individuals with regards to this claim. Neither FOGL, nor any of its Directors have received any written notification or legal documents from the Argentine Government with respect to such actions. FOGL's position on this issue

893-522: The FTSE AIM UK 50 Index , FTSE AIM 100 Index , and FTSE AIM All-Share Index . AIM is an exchange regulated venue featuring an array of principles-based rules for publicly held companies. AIM's regulatory model is based on a comply-or-explain option that lets companies that are floated on AIM either comply with AIM's relatively few rules, or explain why it has decided not to comply with them. Aside from granting leeway in regard to regulatory compliance,

940-458: The Lloyd's of London insurance market. Financial backers (or risk takers), who would accept some of the risk on a given venture (historically a sea voyage with associated risks of shipwreck) in exchange for a premium , would literally write their names under the risk information that was written on a Lloyd's slip created for this purpose. In the financial primary market , securities underwriting

987-401: The financial risk for liability arising from such guarantee. An underwriting arrangement may be created in a number of situations including insurance, issues of security in a public offering , and bank lending, among others. The person or institution that agrees to sell a minimum number of securities of the company for commission is called the underwriter. The term "underwriting" derives from

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1034-400: The premium that needs to be charged to insure that risk. The function of the underwriter is to protect the company's book of business from risks that they feel will make a loss and issue insurance policies at a premium that is commensurate with the exposure presented by a risk. Each insurance company has its own set of underwriting guidelines to help the underwriter determine whether or not

1081-533: The 10 biggest AIM companies on 31 May 2021. The following table lists the top 100 AIM companies by market capitalisation on 25 April 2020. In March 2007, U.S. securities regulator Roel Campos suggested that AIM's rules for share trading have created a market like a casino . Campos reportedly said: "I'm concerned that 30% of issuers that list on AIM are gone in a year. That feels like a casino to me and I believe that investors will treat it as such." The comment resulted in several angry retorts, including one from

1128-657: The AIM rules. In March 2007 The Daily Telegraph noticed a tendency to use listing vehicles incorporated in offshore financial centres prior to floating on AIM. Some 35% of the companies floated on AIM during 2006 were from OFCs, of which the majority came from the Channel Islands or the British Virgin Islands . On 29 January 2009 it was announced that AIM is to form the basis of an Asian-orientated growth or incubator market called 'Tokyo AIM', which will be run as

1175-473: The Exchange also mandates continuous oversight and advice by the issuer's underwriter , referred to as a Nominated Adviser (Nomad). The role of Nomads is central to AIM's regulatory model, as these entities play the role of gatekeepers, advisers and regulators of AIM companies. In advising each firm as to which rules should be complied with and the manner in which existing requirements should be met, Nomads provide

1222-513: The Falklands. The share price peaked at 267p in June 2010, but slumped by half on 12 July 2010, when it was found that one of its prospect wells, Toroa, was empty - as of 1 March 2015, the share price had dropped to ~31 pence. The company merged with Rockhopper Exploration on 18 January 2016. North Falkland Basin in millions (10) barrels and cubic metre of oil equivalent . On the 2 April, during

1269-630: The Law of the Sea. It is also unlawful interference with the right of the Falkland Islanders under the UN Charter to selfdetermination, their right to develop their hydrocarbons resources and the peaceful development of their economy. Alternative Investment Market AIM (formerly the Alternative Investment Market ) is a sub-market of the London Stock Exchange that was launched on 19 June 1995 as

1316-484: The London Stock Exchange, which controls AIM, pointing out that the number of companies that go into liquidation or administration in a year is actually fewer than 2%. AIM has since issued new rules requiring that listed companies maintain a website. The calibre of participants in the market has also been criticised by fund manager John Hempton of Bronte Capital Management. In 2003 Langbar international

1363-713: The UK – and other rules applicable to companies listed in the LSE. AIM believes self-regulation is pivotal to AIM's low regulatory burden: companies seeking an AIM listing are not subject to significant admission requirements; after admission is granted, firms must comply with ongoing obligations which are comparatively lower to the ones that govern the operation of larger exchanges; and certain corporate governance provisions are not mandatory for AIM companies. Therefore, AIM-listed companies are often subject to manipulation by institutional investors. AIM-listed companies usually are only required to adhere to

1410-487: The amount of manual work in processing quotations and policy issuance. This is especially the case for certain simpler life or personal lines (auto, homeowners) insurance. Some insurance companies, however, rely on agents to underwrite for them. This arrangement allows an insurer to operate in a market closer to its clients without having to establish a physical presence. Two major categories of exclusion in insurance underwriting are moral hazard and correlated losses. With

1457-422: The applicant's health status (other factors may be considered as well, such as occupation and risky pursuits) and decide whether the policy can be issued on the standard terms applicable to the customer's age. The factors that insurers use to classify risks are generally objective, clearly related to the likely cost of providing coverage, practical to administer, consistent with applicable law, and designed to protect

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1504-577: The companies they purportedly supervise while, in practice, managing to avoid liability for market misconduct. In 2006, the London Stock Exchange launched a review of Nomad activities, resulting in a regulatory "handbook" for Nomads published by the Financial Services Authority in 2007. AIM is an unregulated market segment, therefore it escapes most of the mandatory provisions contained in European Union directives – as implemented in

1551-427: The company should accept the risk. The information used to evaluate the risk of an applicant for insurance will depend on the type of coverage involved. For example, in underwriting automobile coverage, an individual's driving record is critical. However, the type of automobile is actually far more critical. As part of the underwriting process for life or health insurance , medical underwriting may be used to examine

1598-440: The consideration of more sources of information to assess risk than used previously. These algorithms typically use modern data sources such as SMS / Email for banking information, location data to verify addresses, and so on. Several firms are trying to build models that can gauge a customer's willingness to pay using social media data by applying natural language understanding algorithms which essentially try to analyse and quantify

1645-457: The corporate governance requirements of their home jurisdiction, which, as a practical matter, vary widely. However, the regulatory requirements are more onerous than for private companies and AIM listed plcs are required to prepare audited annual accounts under IFRS . Another important element of AIM's model is the composition of its investor base. Although AIM-listed companies are not start-ups , most are small and potentially more risky than

1692-402: The essential service of allowing firms to abide by tailor-made regulation, reducing regulatory costs in the process. Theoretically, Nomads are liable for damages from tolerating misdemeanors on behalf of their supervised companies, including the loss of reputational capital. However, this heavy reliance on Nomads has been criticised as creating a conflict of interest, since Nomads receive fees from

1739-442: The first of the 4 planned wells at Zebedee a 27.9 meter oil reservoir and 18.5 meter gas reservoir was found (this was better than expected.) South and East Falkland Basin in millions (10) barrels and cubic metre of oil equivalent. Due to the ongoing disputed nature of the Falkland Islands, FOGL received criticism from Argentina. On 30 April 2014 FOGL announced the following in their annual report; Argentina legal issue It

1786-401: The issuer may agree to make the underwriter the exclusive agent for the initial sale of the securities instrument. That is, even though third-party buyers might approach the issuer directly to buy, the issuer agrees to sell exclusively through the underwriter. In summary, the securities issuer gets cash up front, access to the contacts and sales channels of the underwriter, and is insulated from

1833-459: The local market, supply and demand, and risks such as the physical state of the property, environmental or geotechnical risks, zoning, taxes, and insurance. In the evaluation of a real estate loan, lenders assess both the risk of lending to a specific borrower as well as the risk of the underlying real estate. Loan underwriters use various metrics including debt service coverage ratio , loan-to-value ratio , and debt yield ratio to assess out whether

1880-516: The long-term viability of the insurance program. The underwriters may decline the risk, or may provide a quotation in which the premiums have been loaded (including the amount needed to generate a profit, in addition to covering expenses ) or in which various exclusions have been stipulated, which restrict the circumstances under which a claim would be paid. Depending on the type of insurance product (line of business), insurance companies use automated underwriting systems to encode these rules, and reduce

1927-438: The market risk of being unable to sell the securities at a good price. The underwriter receives a profit from the markup, plus the possibility of an exclusive sales agreement. Also, if the securities are priced significantly below market price (as is often the custom), the underwriter also curries favor with powerful customers by granting them an immediate profit (see flipping ), perhaps in a quid pro quo . This practice, which

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1974-450: The property is capable of making debt service payments. Forensic underwriting is the "after-the-fact" process used by lenders to determine what went wrong with a mortgage. Forensic underwriting is a borrower's ability to work out a modification scenario with their current lien holder, not to qualify them for a new loan or a refinance. This is typically done by an underwriter staffed with a team of people who are experienced in every aspect of

2021-512: The real estate field. Underwriting may also refer to financial sponsorship of a venture, and is also used as a term within public broadcasting (both public television and radio ) to describe funding given by a company or organization for the operations of the service, in exchange for a mention of their product or service within the station's programming. Underwriting activity in the mergers and acquisitions , equity issuance , debt issuance, syndicated loans and U.S. municipal bond markets

2068-639: The sub-market, with an average market cap of £80 million per listing. AIM has also started to become an international exchange, often due to its low regulatory burden, especially in relation to the US Sarbanes–Oxley Act (though only a quarter of AIM-listed companies would qualify to be listed on a US stock exchange even prior to passage of the Sarbanes–Oxley Act). By December 2005, over 270 foreign companies had been admitted to AIM. The FTSE Group maintains three indices for measuring AIM, which are

2115-426: Was admitted to the AIM. In 2011 Langbar's now former CEO, Stuart Pearson was found guilty of "three counts of making misleading statements by falsely claiming in stock market announcements that the company had assets held by Banco do Brasil and that some assets were being transferred to the company", jailed for 12 months and banned for being a company director for five years. This £365 million ($ 750m) share fraud

2162-419: Was first used in workers' compensation , where the premium of the insurance was updated monthly, based on the insured's submitted payroll. It is also used in life insurance and cyber insurance . Real estate underwriting is the evaluation of a real estate investment, either of equity ownership or of a real estate loan. The underwriting process generally involves a detailed analysis of expected cash flows,

2209-713: Was investigated by the Serious Fraud Office and the City of London Police when it was discovered in November 2005 that Langbar had none of the assets it declared at listing. This was due in part because the Nomad (Nominated Adviser) failed to carry out due diligence . Also, the Exchange did not ensure that the AIM rules had been complied with. AIM changed the rules for Nomads in 2006. On 19 October 2007 they fined Nabarro Wells £250,000 ($ 512,500) and publicly censured them for breaches of

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