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PRIN 3.1 Who?


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

  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).

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.


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


2A firm will not be subject to a Principle to the extent that it would be contrary to the requirements of an EU measure passed or made before exit day, to the extent that those requirements continue to have effect after exit day under the EUWA.UK's obligations under a Single Market Directive.


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