QUESTION OF ETHICSQ I used to have a category 1 investment business certificate and approved and issued investment business advertisements on behalf of clients.

I have not opted-in to authorisation by the Financial Services Authority.

Would I be able to carry on as before as part of the designated professional body regime?A No, this is an important difference.

Previously, under the Solicitors' Investment Business Rules 1995, firms with a category 1 certificate were able to approve and issue investment advertisements.

However, at N2 (1 December 2001), investment advertisements came within the definition of 'financial promotions' under section 21 of the Financial Services and Markets Act 2000.

Section 21 states that a person must not, in the course of business, 'communicate an invitation or inducement to engage in investment activity' unless he is authorised or the content of the communication is approved by an authorised person. A breach of this statutory requirement may result in any contract entered into being rendered unenforceable and criminal liability on the part of an unauthorised person.Please noteInvestment businessOn 1 December 2001 the Financial Services Authority became the sole regulator under the Financial Services and Markets Act 2000.

Question of Ethics will concentrate on this issue in the coming months.

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

These firms will come within the designated professional body regime (as members of the Law Society) and there is no need to register with the Law Society.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.