Financial firms are subject to several laws, legislations, and regulations they must comply with to avoid costly fines and other penalties. Different countries will have different laws and rules to keep in mind, and it’s important to comply with everything relevant to a particular firm.
One regulatory requirement to keep in mind is to be able to retain and monitor calls. Data retention and call monitoring laws are vital in the financial industry, especially since plenty of fraudulent activities occur in the industry. One regulator that obliges UK firms to monitor employee phone calls is the FCA or the Financial Conduct Authority. Other regulations will have similar requirements with a few variations on what to record.
Basically, firms must be able to record communications data and monitor certain calls from certain people. The essential elements of effective compliance will involve proper data retention measures and call analysis.
Retaining and monitoring calls allows for monitoring certain high-risk traders who might be spoofing and manipulating trades. Such traders can’t be properly investigated without good call recording solutions, allowing them to conduct their illegal activities.
Financial firms usually key in flagged keywords and phrases to detect suspicious conversations. Having this list can deter employees from conducting illegal activities through phone calls. A robust solution will help with having a list of highly-refined keywords to avoid false positives.
Firms must also update their aging message and call archiving solutions to be able to monitor the calls sufficiently. Because old systems cannot record mobile phone calls, financial firms must invest in a mobile call monitoring solution to effectively archive and monitor calls.
Investing in robust call archiving solutions is vital to comply with various regulations, regardless of where the firm is. For more information on the essential elements of effective compliance, see TeleMessage’s article on it.