Damien English (Meath, Fine Gael)
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Question 327: To ask the Minister for Finance if his attention has been drawn to a bogus Internet investment scheme, known as PIPS scheme, the origin of which is outside of the State; his views on whether those involved in promoting this scheme at a local level should be prosecuted; and if he is willing to investigate the issue. [10468/06]

Damien English (Meath, Fine Gael)
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Question 328: To ask the Minister for Finance the measures which will be put in place to prevent bogus Internet investment schemes originating from outside the State from operating within the State; and if he will make a statement on the matter. [10469/06]

Damien English (Meath, Fine Gael)
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Question 329: To ask the Minister for Finance the protection available to consumers who subscribe to bogus Internet investment schemes originating from outside the State; his plans to introduce new protection measures; and if he will make a statement on the matter. [10470/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 327 to 329, inclusive, together.

Under legislation giving effect to Directive 93/22/EEC of 10 May 1993, the investment services directive and other relevant EU legislation, the sale of investment products and the provision of investment advice to members of the public may only be undertaken by the holders of an appropriate authorisation issued by the Financial Regulator or by a competent authority in another EU member state. Under the Investment Intermediaries Act 1995, as amended, it is unlawful for a person to claim to be an investment business firm unless so authorised.

Irish legislation is enforceable against unauthorised investment service promoters within the State and there are effective mechanisms in place to deal with similar entities originating in other EEA jurisdictions. However, investors remain free to invest in products and schemes available in markets outside the EEA, including those offered over the Internet. I would urge investors to be extremely cautious in relation to such investments and at a minimum to obtain independent professional advice.

The Financial Regulator, in co-operation with the Garda, investigates alleged breaches of the law relating to the taking of deposits or intermediation of investments. The Financial Regulator is aware of the particular scheme to which the Deputy refers. If people believe they have been offered investment advice or sold a financial product by an individual who is not authorised to conduct this business, they should report the matter to the Financial Regulator in the first instance. Similarly, if people believe they may have been induced to invest in a fraudulent scheme they should report the matter to the Garda.