Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

PROD 1.3 Application of PROD 3

General: Who? What?

PROD 1.3.1 R
PROD 1.3.-1A R

5A TP firm and a Gibraltar-based firm must also comply with the provisions in PROD 1.3 and PROD 3 in relation to a pathway investment, with respect to activities carried on from an establishment maintained by it, or its appointed representative, in the United Kingdom.

Other firms manufacturing or distributing financial instruments or structured deposits

PROD 1.3.2 R

Other firms which manufacture or distribute financial instruments or structured deposits should take account of PROD 3 as if it were guidance on the Principles and other relevant rules and as if “should” appeared in PROD 3 rules instead of “must”.

Eligible counterparty business

PROD 1.3.3 R

PROD 3.3.1R does not apply to eligible counterparty business.

[Note: article 30(1) of MiFID]

Where?

PROD 1.3.4 R

PROD 3 applies to a firm with respect to activities carried on from an establishment maintained by it, or its appointed representative, in the United Kingdom.

PROD 1.3.5 R
  1. (1)

    PROD 3 also applies to a firm with respect to activities from an establishment overseas with a client in the United Kingdom.

  2. (2)

    But PROD 3 does not apply to those activities if the office from which the activity is carried on were a separate person and the activity:

    1. (a)

      would fall within the overseas persons exclusions in article 72 of the Regulated Activities Order; or

    2. (b)

      would not be regarded as being carried on in the United Kingdom.

PROD 1.3.6 R

[deleted]2

PROD 1.3.7 G

[deleted]2

PROD 1.3.8 G

[deleted]2

PROD 1.3.9 G

[deleted]2

PROD 1.3.10 G

[deleted]2

MiFID

PROD 1.3.11 G

PERG 13 contains general guidance on the persons and businesses to which the UK provisions which implemented MiFID apply2.

PROD 1.3.12 G

[deleted]2

PROD 1.3.13 G

[deleted]2

PROD 1.3.14 G

[deleted]2

Interaction of PROD 3 and the RPPD Guide

PROD 1.3.15 G

A firm to which PROD 3 applies need not apply the guidance in RPPD for matters covered by PROD if the firm has complied with PROD 3.

Manufacturing pathway investments

ROD 1.3.16 G

3 4A firm that is within the scope of PROD 3 (Product governance: MiFID) when it manufactures pathway investments other than in connection with its operating of a retail client’s personal pension scheme or stakeholder pension scheme, is also subject to PROD 6 (Product governance: additional provisions for pathway investments) as guidance with respect to that manufacturing activity (see PROD 1.6.1R(3)).