PROD 1.3 Application of PROD 3

1 PROD 3 applies to

1. (1)

   a MiFID investment firm;

2. (2)

   a CRD credit institution;

3. (3)

   a MiFID optional exemption firm; and

4. (4)

   branches of third country investment firms;

5. with respect to:

6. (5)

   manufacturing financial instruments and structured deposits; and

7. (6)

   distributing financial instruments, structured deposits and investment services.

[Note: articles 1(3), 1(4), 16(3), 24(2) and 41(2) of MiFID]

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”.

PROD 3.3.1R does not apply to eligible counterparty business.

[Note: article 30(1) of MiFID]

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.

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.