PRESS RELEASE: UK Financial Services companies are still struggling to comply with The Financial Conduct Authority regulations which require them to record mobile phone conversations, a new report from analyst firm Ovum has found. Research from call compliance specialist TeleWare, who sponsored the paper, estimates that as many as 45,000 mobile devices are at risk of non-compliance. This is far higher than the 25,000 often cited by the industry.
In 2012, TeleWare found that almost half of UK organisations do not have a fully compliant solution in place. This new report has found that two years down the line, non-compliance is still an issue and the majority of impacted businesses continue to operate without effective measures in place.
A large number of organisations rely on simply imposing policies to prevent use of mobile devices for conversations which would fall under the regulations, but this approach is largely ineffectual, Ovum argues.
Steve Haworth, CEO TeleWare said, “This approach may be technically compliant, but is short-termist at best and unworkable at scale. Technical solutions, rather than policies, provide the most effective method of ensuring compliance without hamstringing employees.”
The exact scope of the regulation – including which companies are implicated and which of their operations and activities on mobile devices need to be recorded, has caused much confusion, despite the regulation coming into force in 2011.
“Some firms still believe they are altogether exempt and as a result are making no effort to comply. What is clear, however, is that all asset classes and instruments are included in the regulation, as are all sizes of buy- and sell-side firms. As for what needs to be recorded, the original wording states that ‘any relevant conversation’ should be recorded and stored, which is an extensive and highly inclusive statement”, added Rik Turner, senior analyst Ovum.
The white paper, entitled “Mobile Call Recording in the Financial Markets: Assessing the Impact and Opportunities Created by Changing International Regulation” explores the various solutions which are available to companies which need to ensure compliance with mobile recording regulations. The paper also looks into the changing regulatory and technology landscapes to provide a clear insight into the current state of the market and to give compliance teams an informed view of the best way forward.
TeleWare, a communications technology specialist, has worked in the call recording space for some 20 years and specialised its business in 2011, addressing the many challenges around the recording, storing and analysing of mobile calls and SMS. The company has developed solutions specifically for the financial marketplace.
Headquartered in UK, clients include financial services companies and blue chip nationals and multinationals.
Currently one in three banking and financial services companies in the UK’s FTSE 100 use TeleWare.
Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. Its research draws upon over 400,000 interviews each year with business and technology, telecoms and sourcing decision-makers, giving Ovum and its clients unparalleled insight, not only into business requirements but also the technology that organizations must support. Ovum is an Informa business.