PRIN 3.2 What?

PRIN applies with respect to the carrying on of:

1. (1)

   regulated activities;

2. (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. (3)

   ancillary activities in relation to designated investment business, home finance activity2, 3insurance mediation activity and accepting deposits.31

   2

PRIN also applies with respect to the communication and approval of financial promotions which:

1. (1)

   if communicated by an unauthorised person without approval would contravene section 21(1) of the Act (Restrictions on financial promotion); and

2. (2)

   may be communicated by a firm without contravening section 238(1) of the Act (Restrictions on promotion of collective investment schemes).

Principles 3, 4 and (in so far as it relates to disclosing to the appropriate regulator) 11 (and this chapter) also:

1. (1)

   apply with respect to the carrying on of unregulated activities (for Principle 3 this is only in a prudential context); and

2. (2)

   take into account any activity of other members of a group of which the firm is a member.