This is a preview. To continue reading please log in or Register to read this article

Monitoring: financial services

Updating authors: Nick Thorpe and Neil Johnston
Consultant editor: Paul Ellison


  • The Financial Conduct Authority (FCA) requires firms carrying out activities in relation to a financial instrument, to take reasonable steps to record all telephone conversations and to keep all electronic communications relating to such activities that are intended to lead to a transaction or relate to the conclusion of a transaction. (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 five years from the date the record was created. (See Retention of records)