PRIN 3
Rules about application
PRIN 3.1
Who?
- 01/12/2004
PRIN 3.1.1
See Notes
PRIN applies to every firm, except that:
- (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 an EU instrument to the firm's Home State regulator;
- (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;
- (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;
- (4) for a UCITS qualifier, only Principles 1, 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);
- (5) PRIN does not apply to an incoming ECA provider acting as such; and
- (6) PRIN does not apply to a firm in relation to its carrying on of auction regulation bidding.
- 01/04/2013
PRIN 3.1.2
See Notes
COBS 1 Annex 1 and the territorial guidance in PERG 13.6 all contain
guidance
that is relevant to the reservation of responsibility to a Home State regulator referred to in PRIN 3.1.1 R (1).
- 01/04/2013
PRIN 3.1.3
See Notes
PRIN 3.1.1 R (2) reflects article 41 of 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.
- 01/04/2013
PRIN 3.1.4
See Notes
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.
- 01/04/2013
PRIN 3.1.6
See Notes
- 01/04/2013
PRIN 3.1.7
See Notes
- 01/04/2013
PRIN 3.2
What?
- 01/12/2004
PRIN 3.2.1
See Notes
PRIN applies with respect to the carrying on of:
- (1) regulated activities;
- (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); and
- (3) ancillary activities in relation to designated investment business, home finance activity, insurance mediation activity and accepting deposits.
- 01/04/2013
PRIN 3.2.3
See Notes
Principles 3, 4 and (in so far as it relates to disclosing to the appropriate regulator ) 11 (and this chapter) also:
- (1) apply with respect to the carrying on of unregulated activities (for Principle 3 this is only in a prudential context); and
- (2) take into account any activity of other members of a group of which the firm is a member.
- 01/04/2013
PRIN 3.3
Where?
- 01/12/2004
PRIN 3.3.1
See Notes
Territorial application of the Principles
| Principle | Territorial application |
| Principles 1, 2 and 3 | in a prudential context, apply with respect to activities wherever they are carried on; otherwise, apply with respect to activities carried on from an establishment maintained by the firm (or its appointed representative) in the United Kingdom unless another applicable rule which is relevant to the activity has a wider territorial scope, in which case the Principle applies with that wider scope in relation to the activity described in that rule. |
| Principle 4 | applies with respect to activities wherever they are carried on. |
| Principle 5 | if the activities have, or might reasonably be regarded as likely to have, a negative effect on confidence in the UK financial system, applies with respect to activities wherever they are carried on; otherwise, applies with respect to activities carried on from an establishment maintained by the firm (or its appointed representative) in the United Kingdom. |
| Principles 6, 7, 8, 9 and 10 | Principle 8, in a prudential context, applies with respect to activities wherever they are carried on; otherwise apply with respect to activities carried on from an establishment maintained by the firm (or its appointed representative) in the United Kingdom unless another applicable rule which is relevant to the activity has a wider territorial scope, in which case the Principle applies with that wider scope in relation to the activity described in that rule. |
| Principle 11 | applies with respect to activities wherever they are carried on. |
- 01/04/2013
PRIN 3.4
General
- 01/12/2004
Reference to "regulators" in Principle 11
PRIN 3.4.5
See Notes
Where Principle 11 refers to regulators, this means, in addition to the appropriate regulator, other regulators with recognised jurisdiction in relation to regulated activities, whether in the United Kingdom or abroad.
- 01/04/2013