<img src="https://secure.leadforensics.com/29321.png" style="display:none;">


Recommended Blogs

How to communicate compliantly with an ageing population
September’s Regulation Round-up, a monthly update from the Financial Conduct Authority, has as its hot topic on how to communicate compliantly with an ageing population. For some time now, the regulator has been concerned about the changing demographic – the growth in the number of older people and...
Make your FCA visit a success: why working with Marketing is key
So the Financial Conduct Authority has announced that it plans to visit your firm. We’re willing to bet that your Marketing team aren’t the first people you think of when it comes to preparation. But they can be vital to success. Here we outline the 6 reasons why. Why is the Financial Conduct...
How to write Compliance-ready content first time
  This stressful scenario is only-too familiar… You desperately need to get out that last-minute financial promotion You’re up against the clock – but you’ve drafted some content that’s been signed off by the business You’re nearly there…and then Compliance steps in And their amendments mean it’s...

Why has FCA backtracked on MiFIDII call recording rules?

Dimitriya Paunova

Business People

This week, the Financial Conduct Authority issued an update on the MiFID II requirements.

The policy statement, available on the FCA website publishes near-final rules on the new regulations, and includes an update on the requirements around the recording of telephone conversations.

What had been proposed?

The original MiFID II proposals would have made all retail financial adviser firms and corporate finance boutiques record telephone conversations with clients and prospects, as we detail in this recent blog.

Advisers and industry bodies had lobbied against these plans, saying that they were disproportionate and would be difficult for smaller advisers to comply with.

Now it seems that the regulator has capitulated.

A change of heart

The Authority had asked for consultation feedback on the new rules, and the statement released this week says that ‘Having considered consultation feedback in the context of MiFID requirements, the FCA agrees that the business model of many of these firms means that a full taping obligation may not always be appropriate’.

Retail financial advisers will now be able to choose whether they tape all relevant phone conversations or, alternatively, take a written note of them.

Does the change apply to all MiFIDII firms?

The flexibility only applies to smaller firms, and not to ‘MiFID investment firms who can be characterised as retail financial advisers’.

The full detail around what is required in the notes is still being determined.

Record-keeping to be tightened up

However firms choose to comply, the FCA made it clear in its statement that the notes will need to meet the objective of ‘advancing our consumer protection objective. Firms will not be able to rely solely on their current record keeping requirements to meet this objective’.

So more rigour around phone call record-keeping will be needed, however you choose to approach the regulations.

The regulator will include its finalised rules on taping in a policy statement scheduled to be published in June.

Keeping on top of Compliance changes

MiFID II is just the latest in a long line of new and updated regulations for the UK banking sector to contend with. To find out how you can keep pace with the ever-changing requirements you face, download a copy of our free whitepaper, The changing role of the Compliance Officer.

The whitepaper looks at the ways that the compliance role is changing as a result and the implications of this shift for compliance professionals. You can read a copy here.

Topics: Compliance

Subscribe to our weekly blog

Tips and best practice for Compliance teams, along with the latest news and views.

  • 2018-04-20 14:59:28 What’s the latest on FCA regulation of consumer credit?

     When the Financial Conduct Authority took over regulation of the consumer credit market in 2014, it aimed to make the market fairer, cleaner and more sustainable. Last year we reviewed how the...

    Learn More
  • 2018-04-13 11:32:07 What are the FCA’s priorities for the coming year?

     This week, the Financial Conduct Authority released its 2018-19 Business Plan. The plan sets out the regulator’s key priorities for the next 12 months.

    Learn More
  • 2018-04-06 09:03:07 FCA to automate regulation: what it means for you

     On 22 March, Chancellor Philip Hammond gave a speech to the second International Fintech Conference in London. The speech covered many areas of financial innovation, but one of the most interesting...

    Learn More