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Status: You are viewing the version of the handbook as on 2005-06-30.

PRIN 3.4 General

Clients and the Principles

PRIN 3.4.1RRP

Although Principle 7 refers to clients, the only requirement of Principle 7 relating to market counterparties is that a firm must communicate information to market counterparties in a way that is not misleading.

PRIN 3.4.2RRP

For the purposes of PRIN, the following provisions of COB 4.1 (Client classification) also apply to a firm intending to carry on, or carrying on, activities other than designated investment business:

  1. (1)

    COB 4.1.12 R and COB 4.1.13 G (Large intermediate customer classified as a market counterparty); and

  2. (2)

    COB 4.1.14 R (Client classified as a private customer).

PRIN 3.4.3GRP
1
  1. (1)

    The whole of COB 4.1 (Client classification) applies to a firm intending to conduct, or conducting, designated investment business other than providing basic advice on a stakeholder product and ancillary activities relating to designated investment business. Any client classificationsestablished in relation to such business will be applicable for the purposes of Principles 6, 7, 8 and 9.1

  2. (2)

    The person to whom a firm provides basic advice on a stakeholder product will be a private customer for all purposes including the purposes of Principles 6, 7, 8 and 9.1

Actions for damages

PRIN 3.4.4RRP

A contravention of the rules in PRIN does not give rise to a right of action by a private person under section 150 of the Act (and each of those rules is specified under section 150(2) of the Act as a provision giving rise to no such right of action).

Reference to "regulators" in Principle 11

PRIN 3.4.5RRP

Where Principle 11 refers to regulators, this means, in addition to the FSA, other regulators with recognised jurisdiction in relation to regulated activities, whether in the United Kingdom or abroad.