September 29, 2016 / 10:37 AM / a year ago

London corporate bankers to have phone calls recorded

LONDON, Sept 29 (IFR) - Bankers working in corporate finance and oil and energy markets are to have their telephone calls recorded under stricter rules set out by Britain’s financial regulator to deter wrongdoing.

Britain’s Financial Conduct Authority (FCA) on Thursday set out stricter rules requiring more bankers to record phone calls and electronic communications in a bid to clamp down on insider trading and other market abuse.

Firms will also have to keep recordings and electronic communications for five years, rather than the six months under current rules.

The FCA has required firms to record phone calls of many staff since 2009. Firms must also take “reasonable steps” to prevent mobile phones from being used if their use would mean the firm is unable to record. But some business areas were excluded.

It plans to extend the new recording regime to corporate finance bankers - who deal with debt and equity raisings, M&A advice and other areas of financing and capital structures - and energy market and oil market activity and discretionary investment managers.

The regulator said the new rules should not cause a material change for firms.

“The knowledge that telephone conversations and electronic communications will be recorded and readily available to compliance departments and to the FCA will deter a greater proportion of individuals from potentially committing market abuse,” it said.

The FCA is updating its rules to harmonise them with MiFID II, securities market rules being introduced across the European Union in January 2018.

MiFID II aims to improve governance of capital markets, help reform derivatives markets and improve trading transparency to make markets more efficient.

The FCA said MiFID II remains relevant in Britain, even though the country has voted to leave the EU.

Other proposals in Thursday’s 568-page MiFID II consultation paper include implementing new standards across best execution, client order handling, personal transactions and requirements for investment firms’ underwriting and placing.

It also wants to strengthen inducement and research rules to improve competition and ensure research is only produced and received where it adds value to investment decisions. (Reporting by Steve Slater)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below