Effective today, March 6, U.K. financial institutions will have to record all telephone conversations and electronic communications relating to client orders and the conclusion of transactions in the equity, bond and derivatives markets. The Financial Services Authority (FSA) published the new rules last spring in an effort to deter and detect market abuse.
The retention period for recorded calls and communications is set at six months. Mobile phone conversations have been exempted from the taping rules but this will be reviewed in 18 months. In addition, discretionary investment managers will not be required to record telephone conversations and electronic communications with firms that are subject to the taping rules.
“Much like Sarbanes-Oxley legislation has been widely seen as a very positive step towards establishing confidence within the U.S. financial markets, the FSA’s new regulations are a very sensible step forward for the U.K.’s financial community,” said Don Palmer, CEO of SIP Print, a provider of call recording products for VoIP phone systems. “This is clearly a very positive development for the call recording industry, and SIP Print expects to play a major role in helping impacted U.K. companies implement call recording solutions that are compliant with these new regulations.”