Getting Compliance Recording Right

compliance recording

If you’re running a business within the financial services sector, you are required to record a large portion of the telephone conversations your business performs. Now that we’re working from home these considerations are all the more sensitive, meaning that call recording technology should be prioritised by your remote communication tech stack.

 

What exactly is compliance recording?

compliance recording

 

Following the 2008 financial crisis, compliance recording regulations were introduced courtesy of the FCA and MiFID II. These compliance recording regulations apply to any business that offers financial products: shares, bonds, options, and futures. Good compliance recording needs to be able to:

  • Capture conversations in a centralised manner for easy access later on.
  • Offer centralised management of these recordings and the data they produce.
  • Cover a range of call scenarios: internal/external, conference, federated, public switched telephone network, and more

 

When you should record your calls

The FCA states that firms must record any telephone interaction that might lead to a trade. These compliance recording principles apply in two main instances. Firstly, calls that certify an agreement/business deal. This can be either with a client or with another regulated business on behalf of a client. Secondly, any client calls that are made about concluding an agreement in the future, should be recorded too. These calls must be stored and made ‘easily accessible’ for at least six months.

 

When you shouldn’t record your calls

There is an exception to the above and it applies not just to the financial services industry but any business that handles card payments over the telephone. Call recording software must ensure that any payment details needed to transfer money that are mentioned in a telephone conversation will be ignored and not stored on any system. This is to minimise the risk of fraud in the event of a security breach.

 

Don’t just record

As mentioned earlier, the calls need to be easily accessible to fulfil audit and compliance needs. The data must be indexed by its metadata so that all information that’s relevant to a particular trade can be retrieved.

The conversation also needs to be recorded distinctly and clearly. Conference calls can make it hard to isolate who’s saying what. The chattering within a trading environment, even more so. Many older recording technologies won’t be able to make these necessary distinctions. This means you’ll need to invest in something with modern, accurate transcription and the option to tune its recording settings to your own environment if you want to stay in line with compliance recording guidelines.

Compliance recording is complex enough, but within our new world of remote work, it’s another hurdle for your team to overcome. Along with compliance recording, defending against cyber-attacks remains a big one. Our online cyber training and testing program will give your team everything they need to avoid a cyber-attack when working remotely.

 

Click here to book a training session today.