Call Recording, New FSA Regulations 3rd January 2018

Call Recording, New FSA Regulations 3rd January 2018

Under new FCA Mifid rules firms involved in finance/loans/mortgages/credit may well be required to record all advisors telephone calls by 8th January 2018. The regulator has proposed extending this call recording requirement to all “Article 3” firms, to include financial advice firms and corporate finance boutiques. The majority of complaints about investments centre on the conversations when investments are sold, says Financial Ombudsman Service.

A paper released in September 2016 states: “We think taping conversations between firms and their clients is likely to be an effective way of advancing our consumer protection objective.” Under Mifid II firms are required to record telephone conversations and electronic communications that relate to “the reception, transmission and execution of orders, or dealing on own account.” These recordings must be held for at least five years. The regulator says it is will consider alternative approaches for smaller advice firms to help lower costs.

This may affect businesses operating as; Accountants, Banks & Building Societies, Financial Consultants, Employee Benefits Consultancy, Financial Planning Advice, Fund Management, Trust Funds Managers, General Insurance Brokers, Law Firms, Life Insurance, Mortgage Brokers, Mortgage Lenders, Pensions Brokers, Pension Providers, Stockbroker, Wealth Managers.

The consultation paper also includes proposals to extend Mifid II’s inducement ban for firms giving investment advice to retail clients. Mifid II comes into effect on 3 January 2018. The FCA says how it is adopting Mifid II is consistent with the Financial Advice Market Review’s recommendation that the regulator should help firms to deliver streamlined advice. The consultation closed on 4 January 2017 with a further consultation expected to be published before the end of this year.

Some have stated that such recordings would be a brilliant way for honest adviser services to protect themselves against false claims.

Cloud call recording gives your organisation peace of mind, flexibility of use, ease of access & requires no hardware changes, making it the ideal feature to apply to your inbound client calling numbers.

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