MiFID Connect industry guidance on the outsourcing practices of regulated firms received recognition from the City regulator today.
The outsourcing guideline is one of five sets of MiFID Connect industry guidelines. Four of these are currently under review by the Financial Services Authority (FSA). Designed to reduce implementation uncertainty and deal with some of the more difficult areas of MiFID implementation, the other guidelines cover:
- suitability and appropriateness;
- investment research;
- conflicts of interest; and
- best execution.
Anthony Belchambers, Chairman of MiFID Connect said: "The MiFID Connect outsourcing guidelines were the first test of FSA's process for recognising industry guidance. We are very conscious of the tight implementation deadline firms are facing and therefore we expect to be able to finalise the remaining guidelines shortly."
Michael McKee who heads the MiFID Connect secretariat said: "FSA is actively reviewing drafts of the investment research, suitability and appropriateness and conflicts guidelines at present. The best execution draft guidelines have had to await resolution of EU law interpretative issues by the EU Commission and CESR. We are now revising that draft in the light of the Commission's recent interpretation of the scope of the obligation."
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