News

Countdown to Legislation Demanding Recording of Calls

New legislation forcing companies to record calls of a financial nature will come into force in spring 2009.

Businesses across the UK are being reminded they will have to be ready for the March 2009 deadline. From that date the Financial Services Authority (FSA) will require any company involved in receiving client orders and negotiating, agreeing, and arranging financial transactions to record all telephone conversations and electronic communications. It is anticipated thousands of firms including insurance brokers, call centres, stock brokers, solicitors and estate agents, will be affected.

The new law aims to help increase customer protection by deterring and detecting market abuse. Companies will be required to maintain a secure recording of calls and electronic communications for a minimum six month period.

In anticipation of the new legislation HIGHnet, Scotland’s leading business communications provider is preparing for an increase in enquiries. It offers companies across the UK a series of telephone and internet services, including a number of packages for recording calls.

David Siegel, of HIGHnet said: “Clearly the new legislation aims to protect customers but recent cases such as Barclays bank being fined for blind calling customers highlight that even the most experienced firms are sometimes unsure of the right technology to use when it comes to managing their calls.

He added: “There’s also the added impact of the credit crunch - companies are going to be keen to keep their spending down, whilst ensuring they fulfil their legal obligations. We are on-standby, ready to offer them tailored advice so they are fully prepared with the right technology come the 1st March 2009.”

The change in the rules means by law, all companies of all sizes who are involved in these types of transactions will have to have the appropriate technology in place to record calls. The legislation requires companies to have a recording solution in place that can store calls in an encrypted, file format for at least six months.

HIGHnet will be offering network based solutions that stores data away from business premises, reducing the cost to the business customer whilst increasing reliability and security.