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PRIN 3.2 What?


4PRIN applies with respect to the carrying on of:

  1. (1)

    regulated activities;

  2. (2)

    activities that constitute dealing in investments as principal, disregarding the exclusion in article 15 of the Regulated Activities Order (Absence of holding out etc); 6

  3. (3)

    ancillary activities in relation to designated investment business, home finance activity, credit-related regulated activity, insurance mediation activity and accepting deposits; and6

  4. (4)

    activities directly arising from insurance risk transformation.6


PRIN also applies with respect to the communication and approval of financial promotions which:

  1. (1)

    if communicated by an unauthorised person without approval would contravene section 21(1) of the Act (Restrictions on financial promotion); and

  2. (2)

    may be communicated by a firm without contravening section 238(1) of the Act (Restrictions on promotion of collective investment schemes).


4PRIN 1 Annex 1, PRIN 3.4.1 R and PRIN 3.4.2 R do not apply with respect to the carrying on of credit-related regulated activities.


Subject to PRIN 3.2.4R,8 Principles 3, 4 and (in so far as it relates to disclosing to the FCA5) 11 (and this chapter) also:

  1. (1)

    apply with respect to the carrying on of unregulated activities (for Principle 3 this is only in a prudential context); and

  2. (2)

    take into account any activity of other members of a group of which the firm is a member.

PRIN 3.2.4R

8In relation to an Annex II benchmark administrator which:

  1. (1)

    administers only benchmarks which are subject to Annex II to the benchmarks regulation; and

  2. (2)

    does not have permission to carry on any other regulated activities in relation to which Principle 11 applies,

Principle 11 (in so far as it relates to disclosing to the FCA) applies only to the regulated activity of administering a benchmark.

PRIN 3.2.5G

8The FCA only expects an Annex II benchmark administrator subject to PRIN 3.2.4R to disclose information under Principle 11 which is relevant to the firm’s compliance with its obligations under the benchmarks regulation.