SYSC 10A Recording telephone conversations and electronic communications — Compliance Review Questions

The Financial Conduct Authority’s (FCA) SYSC 10A outlines requirements for recording telephone conversations and electronic communications that relate to the concluding of transactions in financial markets, client order services that relate to the reception, transmission, and execution of client orders, and the provision or reception of investment advice. This is critical for ensuring transparency, detecting market abuse, and providing evidence of transactions. Here are 30 compliance questions designed to assess adherence to FCA SYSC 10A and related requirements:

Policy and Coverage

1. Does the firm have a policy for the recording of telephone conversations and electronic communications?
2. Which types of communications are covered under the firm’s recording policy?
3. How does the firm ensure all relevant communication channels and devices are included?
4. Are there clear guidelines on exceptions and how they are handled?

Technical Aspects

1. What technology solutions are in place for recording conversations and communications?
2. How does the firm ensure the reliability and quality of the recording system?
3. Are recordings timestamped and securely stored?
4. What measures are in place to prevent unauthorized access to recordings?

Record-Keeping and Retention

1. How long are recordings retained in line with FCA requirements?
2. How does the firm manage the deletion or disposal of recordings after the retention period?
3. What processes are in place to ensure the integrity of recordings during storage and retrieval?
4. How are records of recordings and their accesses maintained?

Access and Retrieval

1. How does the firm ensure that recordings can be accessed and retrieved promptly?
2. What procedures are in place for providing recordings to the FCA or other relevant authorities upon request?
3. How are requests for access to recordings by clients handled?
4. Are there protocols for reviewing and extracting relevant information from recordings?

Staff Training and Awareness

1. What training is provided to staff regarding the recording requirements and their responsibilities?
2. How are new employees made aware of the recording policies and procedures?
3. Is staff informed about the legal and regulatory implications of non-compliance with recording requirements?
4. Are there regular updates or refreshers on recording policies for staff?

Monitoring and Compliance

1. How does the firm monitor compliance with recording requirements?
2. What are the procedures for identifying and rectifying non-compliance?
3. How are breaches of recording policies reported and managed?
4. What internal or external audits are conducted to assess the effectiveness of recording practices?

Outsourcing and Third Parties

1. If recording functions are outsourced, how does the firm ensure compliance with SYSC 10A requirements?
2. What due diligence is conducted on third-party providers of recording services?
3. How are outsourcing contracts structured to ensure service providers adhere to FCA recording requirements?
4. Are there regular reviews of third-party providers’ compliance with recording obligations?

Legal and Regulatory Compliance

1. How does the firm ensure that its recording practices comply with data protection and privacy laws?
2. Are there procedures for handling and responding to legal challenges or disputes involving recordings?

By systematically addressing these questions, compliance officers can ensure that their firm’s practices for recording telephone conversations and electronic communications are robust, effective, and compliant with FCA SYSC 10A. This not only aids in regulatory compliance but also enhances the firm’s ability to manage risks, resolve disputes, and maintain high standards of conduct and transparency in financial markets.

Disclaimer: The information provided herein is solely for informational purposes and represents my own personal views. It should not be construed as legal or regulatory advice. For advice specific to your circumstances, please consult a qualified professional. Additionally, the opinions expressed are my own and do not reflect the views of my employer.