1. Current Rules: COBS 11.8 In force until 14th November 2011
Recording of Telephone Conversations John Bull Partner CPA Audit Compliance Consultants
Current Rules:
COBS 11.8
In force until 14th November 2011

2. COBS 11.8
WHO?
Authorised and regulated firms who carry out the following activities on qualifying investments
Basically…
a) receiving client orders
b) executing client orders
c) arranging for client orders to be executed
COBS (1) Excludes mobile phones.

3. From 14/11/11 the new rule is: The mobile phone exclusion is removed
and the new rule…
COBS A is added:
A firm must take reasonable steps to prevent an employee or contractor from making or receiving relevant telephone conversations and electronic communications on privately-owned equipment which the firm is unable to record.

4. Action Points Reasonable steps
Identify CF30s within the firm who receive, execute or arrange client orders
Identify which of these CF30s may use their mobiles to conduct this business
The CF30s that don’t use their mobiles, to delete their mobile numbers from their business cards, contact details etc.
The CF30s that may use their mobiles either arrange for their own mobiles to be recorded, which could create confidentiality issues or issue a corporate recorded mobile phone.

5. Add a section on mobile phone usage into the Market Abuse training
Add into your compliance monitoring programme a check to ensure that:
a) the mobiles are being recorded
b) a programme for the monitoring of these calls
c) records are maintained for at least six months
c) new staff are aware of the procedures
d) an up to date list of CF30s is maintained with who has and who hasn’t a recorded mobile
Evidence the procedures you have taken throughout

6. Other considerations…
Smaller companies may well rely heavily on their mobiles as part of their Business Continuity Plan.
If this is the case, then the mobile phones that will be used in this event should be recorded phones and the BCP should be reviewed to accommodate this requirement