FCA Call Recording & Storing Regulations Explained
November 16, 2022
For organisations that specialise in providing financial advice, it is compulsory that they are FCA compliant. It’s important for every business to stay up to date with any changing regulations and to make sure they correctly follow the compliance measures for call recording.
As customer experience is at the forefront of most companies nowadays, call recording has become a tool which can help enhance this. You are able to gain a better understand of your customers, use them as employee training resources and all-in-all improve your client satisfaction.
But, what are the essential FCA call recording compliance measures and regulations you need to know?
Always Notify Individuals Their Calls Are Being Recorded
Due to data privacy and protection laws put in place with GDPR, it is fundamental to notify every customer and colleague that their calls will be recorded. It is vital that the recipient is aware of these aspects to be FCA call recording compliant:
- All parties involved must consent to the call being recorded
- The recording is a legal requirement
- The recording is in the public interest
- The recording is in the interests of the recorder
Always Record Calls of Individuals Involved in Trading
The Marketing & Financial Instruments Directive (MiFID) was updated in 2018 and declares that only the conversations of individuals involved in the sale, marketing or promotion of financial services or products must be recorded. Whether this be a successful or unsuccessful transaction, MiFID II states all communications relating to orders and trading must be recorded.
Always Keep a Record of Communication Across All Channels
It’s not just phone calls you have to keep a record of, it’s all communication of individuals involved in trading. From SMS text messages, emails, instant messages, video conferences and face-to-face meetings, every communication must be recorded. With the advanced technology we have nowadays, there are ways to securely store all of this data.
Always Keep Call Recordings for 5 Years
The initial 6-month duration for call recording storage regulations has been updated to 5 years under MiFID II. However, at the request of the regulator, this timeframe can be extended even further to 7 years.
Always Keep the Format & Key Details Consistent
Financial organisations should either store the data by recording the or manually transcribing the contents. Regardless of the method, it’s important to “capture all the main points of the full conversation that are relevant to the order”. These main points include:
- Date and time of correspondence
- Identity of attendees/recipients
- Initiator of correspondence
- Relevant information about the client order including the price, volume, type of order and when it shall be transmitted or executed
After choosing which method is right for you, keep it consistent across all relevant communications.
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