Explanatory note

This Order provides for certain exemptions from the restrictions on advertising imposed by section 57 of the Financial Services Act 1986. It revokes the Financial Services Act 1986 (Investment Advertisements) (Exemptions) Order 1995 and reproduces its provisions with amendments to articles 4 and 10 relating to the sending of dematerialised instructions and certain other minor amendments.

Article 3 of the Order concerns advertisements issued by bodies corporate to members and creditors. Article 4 concerns advertisements which are issued or caused to be issued by a body corporate other than an open-ended investment company where particular investments issued by the body corporate or its holding company are traded or dealt in on a market of the kind referred to in the article or where the advertisement consists of or is accompanied by documents of a kind described in the article. The article specifies certain conditions with which the advertisement must comply if it is to benefit from the exemption. Article 5 concerns advertisements relating to bearer securities which are issued or caused to be issued by a body corporate other than an open-ended investment company. The article specifies certain conditions with which the advertisement must comply if it is to benefit from the exemption. Article 6 concerns advertisements issued in connection with employee share schemes. Articles 7 and 8 respectively concern advertisements issued within groups of bodies corporate and advertisements between participants or potential participants in a joint enterprise. Article 9 concerns investment advertisements issued in connection with the sale of goods or supply of services. Article 10 concerns advertisements issued by persons without a permanent place of business in the United Kingdom to persons with whom they have an existing relationship established abroad. Article 11 concerns advertisements issued to certain persons sufficiently expert to understand the risks involved. Article 12 concerns advertisements issued to persons who are regarded as having an existing and common interest in the subject matter of the advertisement. Article 13 concerns certain advertisements issued by trustees and personal representatives. Article 14 concerns advertisements issued by operators of recognised collective schemes who are not authorised under the Act. Article 15 concerns advertisements relating to publications or programmes which contain advice which does not fall within paragraph 15 of Schedule 1 to the Financial Services Act 1986 by virtue of paragraph 25 or 25A of that Schedule. Article 16 concerns advertisements relating to the facilities offered by a market referred to in the article. Article 17 concerns advertisements relating to shares in a private company established to manage the fabric or common parts of residential or business property or to supply services to such property. Article 18 concerns advertisements issued for the purpose of remedying injustice stated by the Parliamentary Commissioner for Administration to have occurred.