Most financial service institutions need to comply with various regulations regarding text message and call monitoring and retention.One regulator that obliges UK firms to monitor and record communications is the FCA or the Financial Conduct Authority, which requires firms to have internal controls to assure that all customers are treated fairly. The compliance officer will need to be able to identify that the advisors demonstrate compliant behaviour when speaking with customers over the phone.
Apart from the FCA’s regulatory requirements, firms must also keep other regulations and legislations in mind. European firms must have a solid call recording and monitoring strategy to comply with MiFID II or Markets in Financial Instruments Directive II. This legislation requires recording telephone and electronic communications, including text messages, mobile calls, WhatsApp chats, and WeChat messages.
The FCA and MiFID II regulations are just the tip of the iceberg, as there are also local laws and global regulations to keep in mind of. Not all regulations are the same, but the fundamentals can be quite similar to one another, so firms can be safe from the risks of non-compliance as long as they include the following in their data retention program to comply with all relevant regulations:
- Identification of high-risk traders
- Lexicons development for high-volume voice call-based trades
- Proactive call monitoring through real-time speech analytics
- Upgrading legacy recording systems for efficient call archiving
Firms will need a robust mobile call monitoring and message archiving solution according to their specific needs. If they use WhatsApp for their business-related communications, they will need a WhatsApp archiver to retain communications sent and received through the platform. Even if firms do not use modern text message and voice call apps,established legacy recording systems must be upgraded to efficiently archive calls.
Having a robust solution that addresses compliance, regulatory, and eDiscovery response requirements is necessary to be safe from any regulatory risks. For more information on the essential elements to achieve compliance, see TeleMessage’s infographic on the matter.