In November 2006, the Financial Services Authority announced that as part of its move to “more principles-based regulation” it would recognize certain industry developed guidance and issued a Discussion Paper on the methodology for doing this.

The FSA has now confirmed that its supervision of outsourcing by firms will in the future take account of industry guidance which has been issued by MiFID Connect, a joint project established by eleven financial services industry associations. This is the first guidance developed by the industry which the FSA has recognized. It is also the first formal industry guidance related to the EU Markets in Financial Instruments Directive. The FSA has approved this Guidance before formally responding to the November 2006 Discussion Paper.

http://www.fsa.gov.uk/pages/Library/Communication/PR/2007/062.shtml