Last week the FSA issued their much-anticipated ruling on the taping of mobile phone communications. As a result, all ârelevantâ mobile phone conversations relating to investment dealing must be recorded and stored for a period of six months.
âThis comes as no surprise,â says Curtis Nash, Compliant Phones CEO. âThe FSA are fulfilling their functions under the EUâs Market Abuse Directive (MAD) and MiFiD. It also underlines their strong intent to crack down on insider trading.â
In reaching their decision, the FSA spent several months considering banksâ concerns regarding the cost and complexity of introducing recording technology.
âThe FSAâs general view is that the available recording technology is robust and able to meet the challenge.â Says Nash. âIn practice, there is significant variation in cost, capability and operational burden. Banks should evaluate their supplier options carefully.â
Compliant Phones recommends that banks ask prospective suppliers the following questions:
â¢ Does the solution record all calls, to and from mobile numbers? Donât assume this is a given. For example, unified communications solutions that rely on centralized call routing, may not cover incoming mobile calls.
â¢ Does it work across all networks and in all countries? Some networks and territories restrict certain mobile functions, which in turn prevent some recording solutions from operating.
â¢ Does it record calls âin-lineâ in a similar way to established fixed-line call-recording practices? Alternatives such as conference call-based systems, which rely on handset conferencing functionality, can be unstable and liable to drop out.
â¢ Does it make efficient of use your existing telephony assets? Some systems require a higher number of dedicated lines to function than others. This can have a material impact on total solution cost.
â¢ Does it give you the flexibility to exploit preferred routing and call rates or private lines?
â¢ Is it compatible with your existing recording infrastructure and administrative practices?
â¢ Is there a hosted as well as an on-site option? For smaller businesses, a secure hosted service can be easier to deploy and manage, and avoids the capital costs of on-site installations. It may also offer a convenient entry stage prior to on-site implementation.
â¢ Does your existing mobile operator back the system? Not all recording systems work reliably on all networks.
â¢ Does it provide adequate resilience and meet your business-continuity requirements?
â¢ Does it infringe any technology patents that could potentially force removal and replacement of the system at a later stage?