Damien English (Meath, Fine Gael)
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Question 322: To ask the Minister for Finance the position regarding investigations by agencies under his control into a bogus internet investment scheme, known as PIPS scheme; and if he will make a statement on the matter. [26307/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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My Department has been informed by the Financial Regulator that the position in relation to the PIPS scheme remains unchanged since the subject was raised in the House earlier this year. 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 of course urge investors to be extremely cautious in relation to such investments and at a minimum to obtain independent professional advice.

The Financial Regulator, in cooperation with the Gardaí, 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 Gardaí.