City investment firms are under renewed scrutiny after regulations requiring them to record mobile phone conversations came into force this week, catching some off guard as they rushed to implement the technology before the deadline.

The regulations, drawn up by the Financial Services Authority (FSA), mean that firms must now keep recordings of mobile phone conversations for a period of up to six months, in line with requirements for fixed line phones in force since 2008. Companies covered by the rules include banks, stockbrokers, investment managers, and financial and commodity derivatives firms.

Broadly, they have two options – to issue new SIM cards that route calls through a dedicated account, or require staff to download an app to their handsets. Despite having a 12 month period in which to comply, it is thought that many left it late to implement the technology, and it seems likely that not all those covered will be compliant.

The FSA was unsympathetic. “We’ve given firms a year to comply with our new taping rules and therefore expect them to be compliant. The new rules were established in consultation with the firms themselves so they are not unexpected,” the watchdog told SecurityVibes. Failure to comply can result in enforcement action such as a fine, it said.

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