UAC - Standalone local user vs domain user

Hi,
I have an application that during first launch runs a regedit /s command to import some registry keys into the user's (HKCU) registry.
I have discovered if I run the application logged in as a local user (No admin privileges) with a machine that is not joined to the domain, I can launch the application. I can also launch regedit manually with no UAC prompt.
However if I join the machine to the domain and log in as a domain user (No admin privileges) then the application fails to launch due to a UAC prompt at the regedit /s stage and also trying to open regedit also results in a UAC prompt. Using the standalone
local user on a domain joined PC also causes the UAC prompt to appear for both the application and directly launching regedit.
Is this by design - as in the joining of a PC to the domain changes how UAC works? As a test I have moved both the user and computer in AD to a test GPO which has no GPO's applied except the Default Domain policies which have no UAC settings in them?

Local group policy take precedence over domain.
Group Policy processing and precedence
http://technet.microsoft.com/en-us/library/cc785665(v=ws.10).aspx
Previously your uac prompt was not there, may be because you have disabled uac? Or did you run it logged under local admin/built in admin? 
If uac is not disabled/altered uac prompt should be prompted for all the users except built in administrator.
http://windows.microsoft.com/en-us/windows/what-is-user-account-control#1TC=windows-7
Hetti Arachchige V Aravinda | Network & System Administrator (B.Sc, Microsoft Small Business Specialist, MCP, MCTS, MCSA, MCSE,MCITP, CCNA, CEH, MBCS)

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    The ADSI commands work remotely as long as you are an administrator on the domain.
    Invoke-Command only works on systems set up for WinRM remoting and if you are an Administrator on the domain.
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    $de.Add("WinNT://Domain/User")
    You should never the user to the admin group.  It is a formula for disaster.
    ¯\_(ツ)_/¯

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