PRIN 3.1 Who?
PRIN applies to every firm, except that:
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(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;
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(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;
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(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;
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(4)
for a UCITS qualifier, only Principles1, 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).
SYSC App 1 containsguidance on the reservation of responsibility to a Home State regulator referred to in PRIN 3.1.1 R (1).
PRIN 3.1.1 R (2) reflects article 27of 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).