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FCA: Advisers will not have to tape meetings under Mifid II

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The FCA has clarified some areas of the Mifid II regulation hitting the UK markets, following a roundtable event with industry trade bodies.

The regulator has addressed some confusion around rules on recording client communications, saying advisers will not have to record face-to-face meetings.

Under Mifid II firms are required to record telephone conversations and hold the recordings for at least five years, rather than six months as currently required.

“The FCA said that the taping rules did not require the taping of face-to-face conversations. The requirements on accessibility of the information and monitoring of calls were similar to those the FCA would expect under its existing taping rules,” say the minutes of the roundtable meeting.

“Firms would be expected to respond in a reasonable timeframe to reasonable requests from clients for copies of tapes without a charge,” said the minutes.

The FCA also reaffirmed its position on legacy trail commission.

The Investment Association, and other experts, recently stated that legacy trail would be banned under current Mifid II rules, unless an exception was made by ESMA.

The roundtable minutes reiterate the regulator’s previous statements that it has no plans to ban trail. “The FCA noted it had no plans to change its current rules on trail commission. The sunset clause for platforms is affecting the availability of trail, but the FCA has no plans to alter pre-RDR trail off-platform.”

More clarity on the technical guidance for Mifid II and the UK’s implementation of it will come in the FCA’s consultation paper, due out in December. The FCA will also hold a Mifid II conference in October to discuss the changes with the industry.

Among those present at the event were the AIC, the Wealth Management Association, Tisa, the ABI,  and the UK Platforms Group.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Thankfully common sense has prevailed then?

  2. ‘Taping’ – rather shows how out of touch they are.

  3. I would hope that we are some way from having to record meetings.
    Recently we went to our local pet supplier where each year we spent many hundreds of pounds supporting a local retailer. On this occasion we placed a very large bag of dog food on a flat trolley and took it to the check out. My wife who suffers badly from arthritis was ordered to lift the bag up just to prove that we had not hidden something under it. The inference being that we may be shoplifting. As a loyal customer with a strong sense of what is right and honest we felt insulted yet it was pointed out that we had to be treated this way because they had suffered quite a few losses due to shoplifting and therefore everyone, without exception, was required to lift everything out of the trolley.
    We now take our not insignificant business elsewhere – i.e. online. Tape recording meetings simply because a few people dispute what has been said is a similar solution to a problem which can really be resolved far more sympathetically and sensitively without the risk of losing business or clients declining to take advice.

  4. To be honest we tape a number of meetings per year on the basis that the recording ensures nothing is missed and we can play back the tape to reaffirm figures, and other important details that are sometimes missed during an intensive meeting.
    The clients have no issue with this, it is just a matter of seeking their permission and explaining the benefit, we even offer them a copy of the recording, but as yet no one has taken us up on the offer.

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