We established rules regarding the recording of telephone calls to meet our objective of deterring, detecting and preventing market abuse.
The rules
The rules in COBS11.8 oblige firms to retain records of specific telephone conversations and electronic communications of client order services that relate to the reception, transmission and execution of client orders and proprietary trading. It includes communications that are intended to result in a transaction, even if ultimately they do not.
Once recorded, firms must keep such tapes and electronic communications for a period of at least six months from the date the record was created.
Key Information on the Rules
Types of Firms captured by the rules
- Banks
- Stockbrokers
- Investment managers (including CIS managers and hedge fund managers)
- Financial and commodity derivatives firms
Internal conversations and communications are not part of these rules. We also do not expect conversations or communications made by investment analysts, retail financial advisors, and persons carrying on back office functions to be recorded, as such persons will not normally make relevant conversations or communications when acting in those capacities.
Helpful next steps
You may find the following documents helpful in order to understand more about these rules:
