RegulationJul 19 2017

Advisers told to record calls despite rule drop

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Advisers told to record calls despite rule drop

Advisers have been told to consider recording mobile phone calls even though the regulatory requirement to do so has been scrapped, as it could lead to benefits.

The requirement for all phone conversations to be recorded under the European Union’s Markets in Financial Instruments Directive II (Mifid II) drew criticism from advisers when it was announced, with many raising concerns about whether helpful comments recorded during conversations could be misconstrued as advice by litigious lawyers.

In March this year, the Financial Conduct Authority rowed back on its plans to force financial advisers to tape their phone conversations, following a consultation.

But speaking at the Protection Review conference at London’s The Landmark hotel today (19 July) Matt Oldham, chief executive at Fintech Platform Provider Synergy Financial Products, suggested call recording may be useful for firms regardless of their prior concerns.

He said: “[Call recording in call centres] has become normalised, but only because it was adopted by forward-thinking businesses. Mobile phone recording has been met with resistance. But one thing is certain – there is a direction of traffic.”

He said the data gathered through mobile phone recording could be used for the benefit of businesses – providing they comply with all the necessary regulations.

“Winning businesses adopt new technology and use it as a business tool,” he said.

“Businesses with more modern and efficient processes will have greater advantages to investors. Businesses with access to digital data that employ good processes are attractive.”

In the ensuing panel debate, Steve Bryan, director of distribution and marketing at The Exeter, said call recording was “nothing to be frightened of”.

“Consumers are sharing more data than they ever have,” he pointed out, adding “The point for me is not to mix marketing and the provision of services”.

Tom Baigrie, chief executive, Lifesearch, agreed, saying: “Those outraged voices are wonderful people, but they are shouting against the march of time.”

simon.allin@ft.com