QUESTION OF ETHICS

Q I have had a lot of information from the Financial Services Authority (FSA) and the Law Society.

What will happen at N2 and how will it affect me?A N2 - 1 December 2001 - is the date on which the Financial Services and Markets Act 2000 comes into force and the FSA becomes the single regulator for all financial services including investment business.

On this date, the Law Society will cease to be a recognised professional body and will not be able to authorise solicitors under the new Act.

Solicitors wishing to continue to provide mainstream investment business services will need to opt into direct regulation by the FSA by returning its opt-in form by 31 October.

The FSA's mailing will assist such firms.

The Society will become a designated professional body (DPB) and firms wishing to limit their activities to non-mainstream investment business can automatically continue to do so as members of a DPB.

Solicitors must be clear about the scope of the DPB regime, as to stray into the conduct of mainstream investment business without authorisation from the FSA will be a criminal offence.

The Society's information pack will help explain the changes.

Q What will happen to my investment business certificate when it expires at the end of October? Do I need to renew for one month only?A Firms which are currently authorised by the Society in the conduct of investment business will be able to continue to do so up to midnight on 30 November 2001.

They need not apply for a new certificate as the Society has decided to rollover existing certificates for the additional month.

There will be no extra fee.

Any firm wishing to commence investment business before 1 December 2001 will need to obtain authorisation under the current legislation.

The Law Society will continue to accept applications until 30 November 2001.

To obtain an application form telephone RIS on 0870 606 2555.l Question of ethics is compiled by the Law Society's professional ethics guidance team.

Send questions for publication to Austin O'Malley, the Law Society, Ipsley Court, Berrington Close, Redditch B98 0TD; DX 19114 Redditch;tel: 020 7242 1222.