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InSummary

   P  o   l   i  c  y   S   t  a   t  e  m  e  n   t

Financial Services Authority

Taping of mobilephones

Feedback on CP10/7 and final rules

November 2010

10/ 17

The full PS10/17 can be found at:

www.fsa.gov.uk/pages/Library/ Policy/Policy/2010/10_17.shtml 

This paper will be of primary interest to investment firms

including banks, stockbrokers, investment managers (including

collective investment scheme managers and hedge fund managers),

and financial and commodity derivatives firms.

Removing the exemption will provide an extra source of voice

and electronic communication evidence, which can be used to

help us counter the key priority of market abuse and increase the

probability of successful enforcement. The new rules will also

contribute to our wider effort to promote cleaner markets which

should in turn, enhance market confidence.

Download the full PS: www.fsa.gov.uk/pages/Library/Policy/Policy/2010/10_17.shtml  1

Policy Statement 10/17

 N

 o v e m b e r 2 0 1 0

Taping of mobilephones: Feedback on

CP10/7 and final rulesHow mobile phone taping affects your firmAs we publish our Policy Statement (PS) – Taping of mobile

 phones: Feedback on CP10/7 and final rules – we report on

the main issues arising from CP10/7 and publish the made

rules. For more details, read the full paper on our website:

www.fsa.gov.uk.

Will this affect you –directly or indirectly?

Why is this important?

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We are extending the taping rules so firms record and keep copies

of all relevant conversations made on mobile phones provided to

individuals by firms for a period of six months. To support this,

we have introduced a new rule requiring firms to take ‘reasonable

steps’ to ensure such conversations do not take place on private

communication equipment, as a firm cannot record these for

privacy reasons.

Firms must comply with the changes to our taping rules by

14 November 2011.

Although many member states have their own taping requirements

– which apply to fixed lines as well as mobile phones – regimes

differ across the EU. As part of its Markets in Financial Instruments

Directive (MiFID) review, the European Commission is currently

reviewing member state discretion about telephone recording

requirements, including the length of time that telephone records

should be retained.

In March 2008, we published rules (PS08/1) on recording

voice conversations and electronic communications (‘the taping

rules’). These require firms to record ‘relevant communications’

and keep them for six months. These rules − effective from

March 2009 − were mainly aimed at tackling market abuse.

All mobile communications (except emails) were excluded from

these rules, mainly because the technology used to capture these

communications was insufficiently developed. PS08/1 said we

would review the mobile phone exemptions after 18 months.

Consultation Paper (CP) 10/7 then examined the exemption of 

mobile phones, with this Policy Paper as the result.

Download the full PS: www.fsa.gov.uk/pages/Library/Policy/Policy/2010/10_17.shtml 2

Financial Services Authority PS10/17 – In Summary

And why is this importantto your firm?

What do you need todo next?

What’s the backgroundto this?

What is happeninginternationally?

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How can I get the full paper?

Useful links

PS10/17 – In Summary Financial Services Authority

The Financial Services Authority,

25 The North Colonnade,Canary Wharf, London E14 5HS

Main switchboard: 020 7066 1000 Fax: 020 7066 1099

This Policy Statement reports on the main issues arising from Consultation Paper 10/7: Taping: Removing the

mobile phone exemption and publishes final rules.

Please address any comments or enquiries to:

It is the FSA’s policy to make all responses to formal consultation available for public inspection unless the

respondent requests otherwise. A standard confidentiality statement in an email message will not be regarded as

a request for non-disclosure.

A confidential response may be requested from us under the Freedom of Information Act 2000. We may consult

you if we receive such a request. Any decision we make not to disclose the response is reviewable by the Information

Commissioner and the Information Tribunal.

 Jocelyn McCafferty

Investments Policy Department

The Financial Services Authority

25 The North Colonnade

Canary Wharf 

London E14 5HS

Telephone: 020 7066 4150

Email: cp10_7@fsa.gov.uk

 You can download the full Policy Statement from:

www.fsa.gov.uk/pages/Library/Policy/Policy/2010/10_17.shtml 

Or you can order hard copies of the paper by phoning our helpline on

0845 608 2372, quoting reference PS10/17.

Copies are available at £10 each.

Please allow ve working days for delivery.

We have a targeted email alert service for all FSA newsletters.

To subscribe please visit:

www.fsa.gov.uk/pages/Doing/Contact/Register/index.shtml 

For more information on our publications, please go to:

www.fsa.gov.uk/Pages/library/index.shtml 

To get the latest information online, please visit our home page:

www.fsa.gov.uk

Download the full PS: www.fsa.gov.uk/pages/Library/Policy/Policy/2010/10_17.shtml  3