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Monitoring: financial services

Updating authors: Nick Thorpe and Neil Johnston
Consultant editors: Bridget Barker and Paul Ellison

Summary

  • The Financial Conduct Authority (FCA) requires firms carrying out certain trading activities to take reasonable steps to record all fixed-line and firm-issued mobile telephone conversations and to keep all electronic communications relating to client orders and the conclusion of transactions across the equity, bond, financial and commodity derivatives markets. (See FCA recording requirements)
  • Employers should have regard to the "Employment practices data protection code", published by the Information Commissioner's Office, when monitoring employees and/or clients so they do not breach the Data Protection Act 1998 or an individual's right to privacy. (See FCA recording requirements)
  • If a firm fails to take reasonable steps to comply with its recording obligations, the FCA may take enforcement action against the firm and its senior management team. (See What should be recorded?)
  • Firms must take reasonable steps to retain records of all relevant telephone conversations and email communications for at least six months from the date the record was created. (See Retention of records)