PRIN 3.1 Who?
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 a European Community 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 11, 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);1
11 - (5)
PRIN does not apply to an incoming ECA provider acting as such.1
SYSC App 1 , COBS 1 Annex 1 and the territorial guidance in PERG 13.6 all contain 1guidance that is relevant to1 the reservation of responsibility to a Home State regulator referred to in PRIN 3.1.1 R (1).
11PRIN 3.1.1 R (2) reflects article 411of 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.
1PRIN 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).
2PRIN 4 provides specific guidance on the application of the Principles for MiFID business.