Content Options

PRIN 3.1 Who?

PRIN 3.1.1R

PRIN applies to every firm, except that:

  1. (1)

    for an incoming EEA firm or an incoming Treaty firm, the Principles apply only in so far as responsibility for the matter in question is not reserved by an EU4 instrument to the firm's Home State regulator;

  2. (2)

    for an incoming EEA firm which is a CRD credit institution8 without a top-up permission, Principle 4 does not apply;12

  3. (3)

    for an incoming EEA firm which has permission only for cross border services and which does not carry on regulated activities in the United Kingdom, the Principles do not apply;

  4. (4)

    for a UCITS qualifier and AIFM qualifier9, only Principles 11, 2, 3, 7 and 9 apply, and only with respect to the activities in PRIN 3.2.2 R (Communication and approval of financial promotions);1

  5. (5)

    PRIN does not apply to an incoming ECA provider acting as such; and71

  6. (6)

    PRIN does not apply to a firm in relation to its carrying on of auction regulation bidding.7

PRIN 3.1.2G

COBS 1 Annex 1 and the territorial guidance in PERG 13.6 all contain 1guidance that is relevant to1 the reservation of responsibility to a Home State regulator referred to in PRIN 3.1.1 R (1).

PRIN 3.1.3G
PRIN 3.1.4G

PRIN 3.1.1 R (3) puts incoming EEA firms on an equal footing with unauthorised overseas persons who utilise the overseas persons exclusions in article 72 of the Regulated Activities Order.

PRIN 3.1.5G

PRIN 3.1.1 R (4) reflects section 266 of the Act (Disapplication of rules).

PRIN 3.1.6R

2A firm will not be subject to a Principle to the extent that it would be contrary to the UK's obligations under an EU4 instrument.3

PRIN 3.1.7G

2PRIN 4 provides specific guidance on the application of the Principles for MiFID business.

PRIN 3.1.8G

3The Principles will not apply to the extent that they purport to impose an obligation which is inconsistent with the Payment Services Directive, the11 Consumer Credit Directive10 or the Electronic Money Directive.5 For example, there may be circumstances in which Principle 6 may be limited by the harmonised conduct of business obligations applied by the Payment Services Directive and Electronic Money Directive5 to credit institutions (see Parts 5 and 6 of the Payment Services Regulations and Part 5 of the Electronic Money Regulations) or applied by the Consumer Credit Directive (see, for example, the information requirements in the Consumer Credit (Disclosure of Information) Regulations 2010 (SI 2010/1013)).105