Upgrading my fuel system

Anyone have a rule book ? IS my regulator in the wrong spot?
I see regulators mounted on the firewall on street cars, but if you drag race it, the tech guy will gig you for it. Rules wize, it can't be on the firewall incase you lose a flexplate or flywheel, it would take out the regulator and fuel line causing a fire. Plus, it has to be shielded where the fuel line is ran under the car, in the area where the flexplate/flywheel is.