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A raw file (.cr2) is not in any of the color spaces. That sRGB camera setting is only for camera jpegs.
The color space is applied when you convert from Raw. With Adobe Camera Raw open click on the information at the bottom of the ACR window and open the menu to choose the default colour space for your conversion.
Now that's what I call an answer.
Anything wrong per se, in working in the sRGB - any reason I wouldn't want to do this, for example ?
Thanks so much.
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There is nothing wrong with it per se.
If your output is to an inkjet there are some colours that can be captured by your camera, and printed on your printer, that fall inside the Adobe RGB space but outside the sRGB space. So you could in theory lose some of those. Unless you are using a wide gamut monitor, you are only going to see sRGB on screen.
Me - I tend to use Adobe RGB for master files (saved with layers as PSDs) but always convert to sRGB when exporting for web use (as jpeg).
If you are using an external printing agency - find one that accepts your files saved with the profile (sRGB a or ARGB) and that will supply you with a printer profile to soft proof your prints. If they can't - find another printer
Thank you Dave for all the useful information !