The Financial Services Act 1986 (Investment Advertisements) (Exemptions) Order 1997

Overseas persons10

1

In this article “overseas person” means a person who does not fall within section 1(3)(a) of the Act.

2

Subject to the provisions of paragraph (3) below, section 57 of the Act shall not apply to an investment advertisement which an overseas person issues or causes to be issued to another person if that other person is either—

a

a person with or for whom the overseas person has, in the course of carrying on investment business, effected or arranged for the effecting of a transaction within the period of twelve months ending with the date on which the investment advertisement was issued; or

b

a person to whom the overseas person has, in the course of carrying on such business, provided custody services falling within paragraph 13A of Schedule 1 to the Act4 within that period; or

c

a person to whom the overseas person has, in the course of carrying on such a business, given advice falling within paragraph 15 of Schedule 1 to the Act within that period; or

d

a person on whose behalf the overseas person has, in the course of carrying on such business, sent or caused to be sent dematerialised instructions falling within paragraph 16A of Schedule 1 to the Act5 within that period.

3

The provisions of paragraph (2) shall not apply unless—

a

in a case within paragraph (2)(a) above, the transaction was effected or arranged at a time when the other person was neither resident nor had a place of business in the United Kingdom; or

b

in a case within paragraph (2)(b) above, the custody services were provided outside the United Kingdom at a time when the other person was neither resident nor had a place of business in the United Kingdom; or

c

in a case within paragraph (2)(c) above, the advice was given outside the United Kingdom at a time when the other person was neither resident nor had a place of business in the United Kingdom; or

d

in a case within paragraph (2)(d) above, the dematerialised instruction was sent, or caused to be sent when the other person was neither resident nor had a place of business in the United Kingdom; or

e

in a case within paragraph (2)(a), (b), (c) or (d), if the transaction was effected or arranged, or the custody services were provided, or the advice was given or the dematerialised instruction was sent or caused to be sent otherwise than in the circumstances described in whichever is relevant of sub-paragraph (a), (b), (c) or (d) of this paragraph, the overseas person had, on a previous occasion and in the course of carrying on investment business—

i

effected or arranged for the effecting of a transaction with or for the other person in the circumstances described in sub-paragraph (a) of this paragraph; or

ii

provided to the other person custody services falling within paragraph 13A of Schedule 1 to the Act in the circumstances described in sub-paragraph (b) of this paragraph; or

iii

given the other person advice falling within paragraph 15 of Schedule 1 to the Act in the circumstances described in sub-paragraph (c) of this paragraph; or

iv

sent or caused to be sent, on behalf of the other person a dematerialised instruction falling within paragraph 16A of Schedule 1 to the Act in the circumstances described in sub-paragraph (d) of this paragraph.