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I realize that the usual answer is no, but i am wondering if there is a loophole that may allow american citizens who are perblokeently living in the uk. in principle, i am here on a five-year work permit (as of 2006), because this is all they will allow, but i am here on a perblokeent basis as a tenured university professor and so this will be continually renewed. i have already bought and sold a house in the uk, so this is a form of investment; blokey banks ininitially turned down my mortgage requests citing a informal "3 year rule" that one must live in the uk for that period of time to successfully apply for a mortgage. however, eventually i found a major bank willing to supply the mortgage given my employment here and the fact that i now call the uk home. i am wondering if there may similarly be caveats when it comes to diversifying my funds in uk.

You can easily invest in uk stock - being a uk citizen, i regularly invest in us stock. the difference is that you may not be eligible to pay uk taxes and instead have to pay us taxes. stockbroking houses are happy to help you invest in stock, best to talk to them.