![]() ![]() Where new or amended recording policies are needed, these should be clearly set out in writing, documented and signed off under appropriate governance arrangements. They must also contain procedures to follow where breaches or gaps have been identified. These policies should identify which telephone conversations and electronic communications are subject to recording requirements. This includes policies and procedures adopted for home working arrangements. ![]() It is also vital to help with supervisory work, help deter and detect market abuse and to facilitate enforcement.Īs a reminder, firms must have effective, up to date recording policies and they must be able to demonstrate to us, on request, that their policies, procedures and management oversight meet the recording rules. Without effective recording and monitoring controls, there is a real risk of loss of monitoring and surveillance capability, and the absence of protection through loss of evidence to resolve disputes between a firm and its clients over transaction terms. As part of this, individual Senior Managers have an important part to play in establishing and embedding the right culture and governance within firms to continuously improve the standard of conduct at all levels. We expect firms to have a rigorous monitoring regime, commensurate to the increased risks, where in-scope activities may be conducted outside the controlled office environment. It is important for firms to proactively review their recording policies and procedures every time the context and environment they operate in changes. We expect this to remain an area of focus. ![]() We view these actions as serious and have sought orders preventing such individuals from carrying out these activities in the future. This included transmitting lists of trades to copy (‘trading signals’) and making other investment recommendations to clients. We have acted against individuals and firms for misconduct which involved the use of WhatsApp and other social media platforms to arrange deals and provide investment advice. A broad range of activities are included, such as arranging of deals and dealing (as principal or agent) in investments, managing investments, as well as managing a UCITS, an AIF and/or establishing, operating or winding up a collective investment scheme. Use of such apps can present challenges and significant compliance risks, since firms will be less able to effectively monitor communications using these channels.įirms will need to ensure that, if such apps are used for in-scope activities on business devices, they are recorded and auditable. This includes increased use of unmonitored and/or encrypted communication applications (apps) such as WhatsApp for sharing potentially sensitive information connected with work. Risks from misconduct may be heightened or increased by homeworking. We expect firms to continue to comply with the recording obligations in our Senior Management Arrangements, Systems and Controls sourcebook (SYSC 10A), which remain the same. The pandemic has had a significant effect on how businesses are run, with changes to technology and increased homeworking, which may in some cases be long lasting. ![]()
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