Effective call monitoring compliance is a very important component in a lot of financial services firms. As regulators increasingly find the current call recording and monitoring practices of a lot of financial companies to be inadequate, failure to establish that they are the core of your regulatory compliance strategy can leave your company exposed to enforcement actions.
The Financial Conduct Authority (FCA) is one of the regulators that oblige firms in the United Kingdom to monitor phone calls of their employees. Under the FCA requirements, financial service firms are supposed to have internal controls to make sure that all customers are being treated with fairness, according to their standards. This involves the implementation of a call monitoring solution that will enable the compliance officers to prove that their supervisors are demonstrating compliant behavior when they are talking to customers over their mobile devices.
The Markets in Financial Instruments Directive II (MiFID II) is another legislation that requires European financial service firms to have a solid call monitoring strategy. This financial regime requires recording of telephone of telephone conversations as well as electronic communications, which include but are not limited to, text messages, mobile calls and WhatsApp chats.
The abovementioned stringent call monitoring requirements are just the tip of the iceberg. Local laws and global industry regulators also enforce guidance with respect to recording as well as monitoring phone calls. Regulators such as CFTC investigate companies that do not supervise or monitor traders that are being investigated for manipulative trading and spoofing. To minimize such actions, it is very important for companies to take into account all of the information as well as data elements related to their customers when they are monitoring trade activities.