FSA Rules


FSA publishes new rules on telephone recording

Press Release
FSA/PN/017/2008
3 March 2008

The Financial Services Authority (FSA) today published new rules requiring firms to record telephone conversations and other electronic communications to help deter and detect market abuse in the UK.

From March 2009, firms 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 FSA consulted on the taping rules last year. In response to the comments received, the FSA conducted a further review of the cost-benefit analysis and discussed with the industry the scope and practicalities of the new rules.

The original proposals changed significantly following this work. The retention period for recorded calls and communications has been reduced from 3 years to 6 months. Mobile phone conversations have been exempted from the taping rules but this will be reviewed in 18 months time. 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.

Notes for editors
The FSA consulted on the taping rules in Chapter 19 of CP07/9: 'Conduct of Business regime: Non-MIFID deferred matters'. More information about the new rules can be found in PS08/1: ' Telephone recording: recording voice conversations and electronic communications'. Both these documents are available on the FSA website
The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.

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