This is an old revision of this page, as edited by Yeu Ninje (talk | contribs) at 01:24, 29 March 2005 (advantages of PRIMA). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.
Revision as of 01:24, 29 March 2005 by Yeu Ninje (talk | contribs) (advantages of PRIMA)(diff) ← Previous revision | Latest revision (diff) | Newer revision → (diff)The Place of the Relevant Intermediary Approach, or PRIMA, is a legal principle taken in finance to determine the applicable law in relation to a security. It is an alternative approach to the historically important look-through approach, and forms the basis for the Hague Securities Convention.
Unlike the look-through approach, PRIMA does not look through the various tiers of intermediaries to the underlying securities. Rather, it stops at the level of the intermediary immediately above the parties to the pledge or transfer. Its important advantage is that the question of whether or not the applicalb e law is governed by one single jurisdiction even where a portfolio of securities of issuers is involved. This provides certainty and clarity for all parties involved.