Recorded Calls to Investment Companies

Recorded Calls to Investment Companies.

Many people may not be aware but under European investment directives, new rules will apply from January 2017 where investment companies will be required to record all incoming and outgoing calls under MiFID II.  This is to try and eliminate or reduce fraud by both investors and investment company employees.

The UK financial industry regulator, the Financial Conduct Authority (FCA) is actually against these new rules given that it may not just affect large investment companies but it may affect many smaller financial advisers, mortgage brokers, stockbrokers and other investment intermediaries if they are caught by the MiFID rules.

This means that if you are arranging certain specialist investments such as stocks and shares, unit trusts and investment trusts your call is likely to be recorded. Whilst this should ensure records for good practice and good advice as far as use help from financial company is concerned it will also place a burden on very small companies.

Big brother is listening.

Comment

Many clients and new clients may have noticed that when you telephone our offices or we telephone you all of our calls are now recorded. This is to protect both you, us and in particular your money when we telephone investment and pension companies and they have not done what we ask them to do. Over the coming years we believe this may save clients many thousands of pounds where things are not done that should have been done in a timely manner.

That said, it is not law yet for financial advisers to record calls but we believe it is in both yours and our best interests. If you would like a copy of recorded calls you receive from us or make to us we are more than happy to provide you with a copy under Data Protection laws.