The guidelines, covering investor protections under the forthcoming Markets in Financial Instruments Directive (MiFID), have been confirmed by the Financial Services Authority (FSA). This means that the FSA will take into account a firm's use of the guidelines when exercising its regulatory functions. The guidelines come from MiFID Connect, a joint project between 11 City trade associations to ease the transition from the current FSA rulebook to the implementation of the new EU-wide requirements. MiFID Connect will make the guidelines available to firms, who are working to comply with the new Directive, which comes into force on November 1st this year.

The guidelines set out points firms might consider in assessing whether their advice-based investment services are suitable for their customers, and whether other services they provide may be appropriate for the client under new requirements introduced by MiFID.

Anthony Belchambers, Chairman of MiFID Connect, said: "The regulator's process for recognising industry guidance such as this is making an valuable contribution towards helping firms come into compliance with what is a broad, far reaching and principles-based directive."

Angela Knight, Chief Executive of the British Bankers' Association - which provides the secretariat for MiFID Connect - said: "The clock is ticking for financial services firms across Europe. In the UK, the industry and its regulators are working together to ensure we are the best placed in Europe to benefit from the opportunities to come after November 1st. Through its guidance, MiFID Connect has helped to ensure the UK financial services industry will hit the ground running."