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The white paper, which outlines the current status across Europe where a myriad of different rules and regulations exist, examines the true cost and risks to financial services firms of not recording.
The release also coincides with a recent feedback statement on 6 September (CESR/10-918) from the Committee of European Securities Regulators (CESR), the Paris-based organisation that feeds into the European Commission, proposing a minimum harmonisation of the European Economic Area (EEA) recording obligation.
Gary Wright, senior analyst, B.I.S.S. Research, said: “Financial services markets’ rules and regulations are constantly under review by regulators, ready to close any potential gaps, which might damage the reputation of the industry or increase risk to investors. The looming MiFID 2 amendments, due in 2011, will move directly to rules, bypassing the directive route, requiring firms to invest further in technology to enable compliance. In alignment with the majority of the other financial services directives, its anticipated focus will be client/investor protection.”
He added: “With the burden of proof lying squarely on financial services firms to show they are acting in the best interests of their clients and with the use of mobile phones for conducting day to day business in financial services growing rapidly, it is imperative that firms install a robust recording solution for all telephone communications, including SMS.”
Stephen Thurston, director and founding partner at Business Systems, said: “We have already signed a number of contracts with leading Norwegian financial Services firms for mobile call recording technology. These projects clearly demonstrate to the UK financial services market our ability to deliver proven, patented technology, should the FSA rule in favour of mobile call recording as expected later this year.”
Gary Wright concluded: “The anticipated ruling on the mandatory recording of mobile phones will close an existing gap, strengthening compliance and reducing risk for financial services firms. The challenges of keeping ahead of all the regulatory changes are a considerable burden, but in the case of mobile phone recording suitable cost effective solutions are available.”