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Status: You are viewing the version of the handbook as on 2009-03-31.

PRIN 3.1 Who?

PRIN 3.1.1RRP

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 a European Community instrument to the firm's Home State regulator;

  2. (2)

    for an incoming EEA firm which is a BCD credit institution without a top-up permission, Principle 4 applies only in relation to the liquidity of a branch established in the United Kingdom;

  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, 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

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  5. (5)

    PRIN does not apply to an incoming ECA provider acting as such.1

PRIN 3.1.2G

SYSC App 1 , 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).

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PRIN 3.1.3G

PRIN 3.1.1 R (2) reflects article 411of the Banking Consolidation Directive which provides that the Host State regulator retains responsibility in cooperation with the Home State regulator for the supervision of the liquidity of a branch of a BCD credit institution.

1
PRIN 3.1.4GRP

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 3.1.5GRP

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

PRIN 3.1.6RRP

2A firm will not be subject to a Principle to the extent that it would be contrary to the UK's obligations under a Single Market Directive.

PRIN 3.1.7GRP

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