LONDON, Sept 29 Britain's Financial Conduct
Authority has proposed stricter rules requiring bankers advising
companies on corporate finance to record all telephone calls and
electronic communications, in a bid to clamp down on insider
trading and other market abuses.
In its third consultation paper on the European Union's
landmark reform of securities markets, published on Thursday,
the FCA said it would widen the scope of existing rules on
taping calls to include corporate finance activities such as
advice on capital raising and mergers.
"The knowledge that telephone conversations and electronic
communications will be recorded...will deter a greater
proportion of individuals from potentially committing market
abuse," the FCA said.
The rules will also be widened to include financial advisers
for individual retail customers. The consultation on the
proposals is open until Jan. 4 2017.
The consultation paper forms part of the FCA's discussion on
the implementation of the Markets in Financial Instruments
Directive, a set of reforms that will overhaul the way
securities and commodities are traded in Europe - better known
as Mifid II.
The rules are designed to apply lessons learned during the
financial crisis to better protect companies and investors and
to stamp out market misconduct.
The FCA's proposal to include corporate finance in the scope
of calls that must be recorded goes beyond what is included in
the Mifid II rules, the FCA said.
(Reporting by Lawrence White; Editing by Adrian Croft)