For the purposes of article 53(1)1, 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.
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(1)1 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.