QUESTION OF ETHICSQ Does my firm need to alter its stationery by 1 December 2001 in anticipation of the new regulatory regime regarding investment business?A From this date (N2) there will be one regulator of investment business, which is the FSA.

Firms not opting into authorisation by the FSA must change the statement that explains their regulatory position by this date.

The wording generally used is: 'This firm is regulated by the Law Society in the conduct of investment business'.

Firms not opting into authorisation have the option of removing this statement in full, or deleting the words '...in the conduct of investment business' (if they want clients to know they are regulated generally by the Law Society).

Firms using old stationery after N2 should be mindful of the above.

The new notepaper can be used before N2.

Firms should avoid saying they are 'authorised' by the Law Society.

As part of the FSA's transitional arrangements, firms which opt in can continue to carry the original statement until 30 November 2002.

However, they can comply with the FSA's requirements for stationery disclosure after N2.

The FSA's opt-in pack provides details.Please noteInvestment businessOn 1 December 2001 the Financial Services Authority (FSA) becomes the sole regulator under the Financial Services and Markets Act 2000.

Under the Act, most firms now doing non-discrete investment business only will no longer need authorisation.

Most firms now doing discrete investment business (or authorised by other regulators) will need to be authorised by the FSA, and must return the FSA's 'opt-in' form by 31 October 2001.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.