PRIN 1
Introduction
PRIN 1.1
Application and purpose
- 01/12/2004
Application
PRIN 1.1.1
See Notes
- 01/11/2007
Purpose
PRIN 1.1.2
See Notes
- 01/11/2007
Link to fit and proper standard in the threshold conditions
PRIN 1.1.4
See Notes
- 01/12/2001
Taking group activities into account
PRIN 1.1.5
See Notes
- 01/12/2001
Standards in markets outside the United Kingdom
PRIN 1.1.6
See Notes
- 06/08/2010
PRIN 1.1.6A
See Notes
- 01/11/2007
Consequences of breaching the Principles
PRIN 1.1.7
See Notes
- 01/12/2001
PRIN 1.1.8
See Notes
- 01/12/2001
PRIN 1.1.9
See Notes
- 01/12/2001
Responsibilities of providers and distributors under the Principles
PRIN 1.1.10
See Notes
- 06/08/2007
PRIN 1.2
Clients and the Principles
- 01/12/2004
Characteristics of the client
PRIN 1.2.1
See Notes
- 01/12/2001
Approach to client categorisation
PRIN 1.2.2
See Notes
- 01/11/2007
PRIN 1.2.3
See Notes
- (1) In relation to the carrying on of designated investment business, a firm's categorisation of a client under the COBS client categorisation chapter (COBS 3) will be applicable for the purposes of Principles 6, 7, 8 and 9.
- (2) The person to whom a firm gives basic advice on a stakeholder product will be a retail client for all purposes, including the purposes of Principles 6, 7, 8 and 9.
- (3) In relation to carrying on activities other than designated investment business (for example, general insurance business or accepting deposits) the firm may choose to comply with Principles 6, 7, 8 and 9 as if all its clients were customers. Alternatively, it may choose to distinguish between eligible counterparties and customers in complying with those Principles. If it chooses to make such a distinction, it must comply with PRIN 1 Annex 1 in determining whether that client is an eligible counterparty (see PRIN 3.4.2 R). In doing so, the requirements in SYSC will apply, including the requirement to make and retain adequate records.
- (4) In relation to carrying on activities that fall within both (1) and (3) (for example, mixed designated investment business and accepting deposits), a firm's categorisation of a client under the COBS client categorisation chapter (COBS 3) will be applicable for the purposes of Principles 6, 7, 8 and 9.
- 01/11/2007
PRIN 1.2.6
See Notes
- 01/11/2007
PRIN 1 Annex 1
Non-designated investment business - clients that a firm may treat as an eligible counterparty for the purposes of PRIN
- 01/11/2007
See Notes
1.1 | A firm may categorise the following types of client as an eligible counterparty for the purposes of PRIN: | |||
(1) | a properly constituted government (including a quasi-governmental body or a government agency) of any country or territory; | |||
(2) | a central bank or other national monetary authority of any country or territory; | |||
(3) | a supranational whose members are either countries or central banks or national monetary authorities; | |||
(4) | a State investment body, or a body charged with, or intervening in, the management of the public debt; | |||
(5) | another firm, or an overseas financial services institution; | |||
(6) | any associate of a firm (except an OPS firm), or of an overseas financial services institution, if the firm or institution consents; | |||
(7) | a client when he is classified as an eligible counterparty in accordance with 1.2; or | |||
(8) | a recognised investment exchange, designated investment exchange, regulated market or clearing house. | |||
1.2 | A firm may classify a client (other than another firm, regulated collective investment scheme, or an overseas financial services institution) as an eligible counterparty for the purposes of PRIN under 1.1(7) if: | |||
(1) | the client at the time he is classified is one of the following: | |||
(a) | a body corporate (including a limited liability partnership) which has (or any of whose holding companies or subsidiaries has) called up share capital of at least £10 million (or its equivalent in any other currency at the relevant time); | |||
(b) | a body corporate that meets (or any of whose holding companies or subsidiaries meets) two of the following tests: | |||
(i) | a balance sheet total of 12.5 million euros (or its equivalent in any other currency at the relevant time); | |||
(ii) | a net turnover of 25 million euros (or its equivalent in any other currency at the relevant time); | |||
(iii) | an average number of employees during the year of 250; | |||
(c) | a local authority or public authority; | |||
(d) | a partnership or unincorporated association which has net assets of at least £10 million (or its equivalent in any other currency at the relevant time) (and calculated, in the case of a limited partnership, without deducting loans owing to any of the partners); | |||
(e) | a trustee of a trust (other than an occupational pension scheme, SSAS, personal pension scheme or stakeholder pension scheme) with assets of at least £10 million (or its equivalent in any other currency), calculated by aggregating the value of the cash and designated investments forming part of the trust's assets, but before deducting its liabilities; | |||
(f) | a trustee of an occupational pension scheme or SSAS, or a trustee or operator of a personal pension scheme or stakeholder pension scheme where the scheme has (or has had at any time during the previous two years): | |||
(i) | at least 50 members; and | |||
(ii) | assets under management of not less than £10 million (or its equivalent in any other currency at the relevant time); and | |||
(2) | the firm has, before commencing business with the client on an eligible counterparty basis: | |||
(a) | advised the client in writing that he is being categorised as an eligible counterparty for the purposes of PRIN; | |||
(b) | given a written warning to the client that he will lose protections under the regulatory system; | |||
(c) | for a client falling under (1)(a) or (b): | |||
(i) | taken reasonable steps to ensure that the written notices required by (a) and (b) have been delivered to a person authorised to take such a decision for the client; and | |||
(ii) | not been notified by the client that the client objects to being classified as an eligible counterparty; | |||
(d) | for a client falling under (1)(c), (d), (e) or (f): | |||
(i) | taken reasonable steps to ensure that the written notices required by (a) and (b) have been delivered to a person authorised to take such a decision for the client; and | |||
(ii) | obtained the client's written consent or is otherwise able to demonstrate that consent has been given. |
- 01/11/2007