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
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
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
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)