FSA Recording deadline for the Financial Services Industry |
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 The FSA will regulate general insurance (with the exception of long-term care) from 14th January 2005 and mortgage regulation was implemented on 31st October 2004. As a result of this, the FSA Code Of Conduct will now apply to the Insurance and Mortgage bodies, who sell or advise on Insurance and Mortgage products. This code of Conduct enforces the need to keep detailed records of all conversations. For example:
Market Conduct
Inter-Professional Conduct
3.6 Taping.
A firm should implement appropriate systems and controls with a view to ensuring that the material terms of all transactions to which it is a party, and other material information about such transactions, are promptly and accurately recorded in its books or records. The manner in which this information may be recorded include:
1) Voice recordings of transactions;
2) Voice recordings of oral confirmations;
3) Written trading logs or blotters; and
4) Automated electronic records.
Also: Schedule 1 Record keeping requirements of Insurance Conduct Of Business (ICOB) highlights this need too.
Banking, Stock broking and Dealing organisations have utilised voice recording, as standard practice for many years and ultimately saved Millions of pounds in dispute settlements and verification activities. With the introduction of a move to oblige other sectors of finance to follow suit, this can only be seen as a positive step. The Insurance and Mortgage markets, from the General Public's perspective, have always been viewed with caution and as an ill-fated necessity. Their professionalism has been taken into disrepute, as a result of many high profile cases of alleged miss-selling of Financial products and services. Through this change in regulations, these enforced codes of conduct that now need to be followed; will help build a more credible persona for this hugely misunderstood sector of the Finance Market.
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