For the purposes of article 53, advice must be given to or directed at someone who either holds investments or is a prospective investor (or their agent). Where the investment is a risk-only contract of insurance such as house contents insurance, the policyholder or prospective policyholder is regarded as an investor.
Article 53 does apply where the recipient is someone who invests on behalf of other persons (whether as a principal or agent), such as:
a trustee or nominee; or
a discretionary fund manager; or
an attorney or anyone else who enters into investment transactions as agent for investors;
where he receives the advice in that capacity.
Advice will still be covered by article 53 even though it may not be given to or directed at a particular investor (for example, advice given in a periodical publication or on a website). The expression ‘investor’ has a broad meaning and will include institutional or professional investors.