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Taping Of Telephone Calls - The FSA's Actual Guidelines |
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 FSA Publishes statement guide, after misunderstanding of
New Rules on Taping Of Telephone Calls. In March 2008 the FSA published rules which required some firms to tape some telephone calls. The aim of the rules were to tackle market abuse by improving the FSA's ability to deter and enforce against it. The rules came into force in March 2009.
However, there has been some misunderstanding of the rules which has meant that:
Sadly, some technology providers have been advising financial advisers that they are within the scope of the proposals and would be required to record their calls. In some circumstances this has been incorrect.
Some advertisements completely misrepresent the FSA rules and try to persuade firms that they should buy extra services. These services are not required by the rules.
Here is a summary of the rules, as per current FSA guidelines.
What types of product are included?
The rules apply to products included in the market abuse regime. These are qualifying investments (include shares, bonds, options and futures) traded on a prescribed market (or investments that are related to these investments).
(For example markets operated by EDX London Ltd, ICE Futures Europe, LIFFE, London Stock Exchange plc, PLUS markets plc, SWX Europe Limited, The London Metal Exchange and other EEA regulated markets.)
What types of firm are outside the scope of the rules?
The FSA rules exclude:
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retail financial advisers,
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insurance brokers,
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mortgage brokers,
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solicitors, (other than Authorised Professional Firms),
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estate agents and
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those receiving and executing loans.
What types of product are outside the scope of the rules?
The rules do not apply to:
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insurance products;
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dealing in the units of most collective investment schemes;
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corporate treasury activities; and
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corporate finance business.
Are firms required to tape internal phone calls?
No. This is not necessary and is not part of the rules. The FSA only expect calls with clients to be recorded. People in back office functions are not captured by the rules, on the basis that they would not normally make relevant communications when doing their job.
What type of call needs to be recorded?
Relevant firms need to record calls which:
- conclude an agreement with any client or with another regulated firm on behalf of a client; or
- are conducted with a professional client or eligible counterparty with a view to concluding an agreement.
For further details on the actual FSA rules relating to Taping of Telephone calls, please visit FSA Recording.
Disclaimer
The information on this website is provided by ComputerTel Ltd as a service to the public and is intended merely to give a general overview. The information is provided on an “as is” basis and all statements and representations (other than fraudulent misrepresentation) warranties, terms, limitations, including any implied by statute, consumer law or otherwise, are hereby excluded to the maximum extent permissible by law. Accordingly, you should neither rely nor act upon any of the information contained in these pages and, if you choose to do so, it will be entirely at your own risk.
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