­The UK’s Financial Services Authority has adopted rules that require financial organizations to record and store all relevant communications for a period of at least six months. The move has been opposed by the banks who claim that it will cost around US$16,000 per handset to implement the rules.

Banks and other regulated financial institutions are also required to make reasonable steps to ensure that employees do not make business related calls on personal, unmonitored phones.

According to FSA, many respondents’ argued that the benefits will not materialize as a result of individuals circumventing the rules. It is true that determined and inventive individuals will always find ways to evade the rule. It is their contention that by having as comprehensive a taping regime as possible we limit the scope or temptation for employees to infringe the market abuse rules on fixed or mobile lines which are not taped.

The new regulations come into effect next November, giving the organizations time to implement the necessary recording devices.

As per FSA, by taping these previously unrecorded lines, they will have an additional source of evidence to draw on which their experience shows can be of significant value to investigative and enforcement work.