Lifequote reviews recordings ahead of possible FCA change

Lifequote reviews recordings ahead of possible FCA change

Lifequote is reviewing its call recording processes to support advisers needing recordings of client conversations to facilitate any regulatory changes introduced by the Financial Conduct Authority.

The specialist protection service’s system already records the first contact with the adviser’s customer, typically collecting application data, all the subsequent calls with advisers, third parties and providers.

The technology currently holds the recordings on behalf of the adviser, but if the FCA requires advisers to have a record of all client telephone calls, the firm said it will either hold this centrally or will provide personalised data files in order to prove that the advisers, or any outsourced support, is in the clients’ best interests and in line with Europe-wide rules.

Article continues after advert

This refers to the second iteration of the Markets in Financial Instruments Directive, which if fully applied by the UK regulator, will require advisers to take all reasonable steps to record relevant telephone conversations, face-to-face meetings and electronic communications relating to actual or proposed client transactions.

During stakeholder engagement, the FCA said it widely heard that advisers vary in terms of their commercial practices concerning record-keeping and for some smaller firms this requirement will represent a significant change, with concerns raised in respect to the likely costs involved.

Neil McCarthy, sales and marketing director at Lifequote; commented: “We have always supported advisers using our outsourced client management service with 100 per cent call recording as disputes do happen, which can be especially sensitive with regards to non-disclosure at the point of claim.

“Should the FCA impose rules that mean that advisers need to have all records on their files, we are reviewing how best to provide this.”