The conducting of investment business, and incidentally the advertising of investments, in the UK is regulated by the Financial Services Authority ('FSA') under the Financial Services Act 1986 ('The Act').

Full information about the operations of the FSA can be found at its website, www.fsa.gov.uk ; the text of the Act and explanatory notes can be found at the Office of Public Sector Information, http://www.opsi.gov.uk/

In 2000, a new Financial Services Act ('The 2000 Act') was passed by Parliament and is now on the statute book, followed by numerous sets of subsidiary regulations issued by the Treasury in subsequent years. Much of this regulation can be found at http://www.hm-treasury.gov.uk/ .

Although the 2000 Act was a very large and wide-ranging piece of legislation, and contained numerous detailed changes to the previous statutory regime, it can be seen more as a piece of codification than as a piece of new legislation. Its most important result was to bring financial services regulation together, directly under the FSA, whereas previously regulation was exercised through a series of self-regulatory bodies such as the Pensions and Investment Authority, the Securities and Futures Association, etc.

In broad terms, the 2000 Act did not change the position as regards the advertising and sale of investments in the UK, which is sketched below. NB The legislation is highly complex, and this general outline is nothing more than a brief introduction. You should not rely on it and should take professional advice before making investments or taking any other connected action.

The Act requires that any person (individual or company) involved in providing, marketing and selling investments to UK residents should be authorised, and that advertisements to the public should be in relation only to products offered by such authorised providers. There are some exceptions for investments offered only to limited numbers of experienced, professional or 'high net worth' investors; but for most UK residents the Act means that they will be offered only products and services which are authorised. In practice that means that the investments offered are not risky, comparatively speaking, and that (depending on the investment) some type of compensation will be available in the event of failure of the investment provider.

Before the Internet, it was reasonably clear that a publication (UK or otherwise) with a significant UK readership was not permitted to include advertisements for unauthorised products or services (eg offshore hedge funds or equity brokerages). One of the purposes of the 2000 Act was to clarify the circumstances under which an Internet site can carry unauthorised advertisements, and there are a number of tests according to which a site will be judged. The key test is whether a site is directed towards UK residents, and this determination will depend on the nature of the products and services advertised, together with the 'defences' which the site erects against unauthorised viewing of them.

The InvestorsOffshore site is not directed to UK residents. It sets out to advise expatriates and global 'high net worth' investors market about investments available to them world-wide, and the jurisdictions where such investments are available. The site therefore makes it clear that advertisements carried are not authorised to be viewed by UK residents, and requests such individuals not to view them.