THE FCA is warning brokers that recording telephone conversations and electronic communications must not stop, even during homeworking as a result of Lockdown 3.0.
While the FCA acknowledges that the pandemic has changed significantly the way businesses must work, it says risks are heightened by unmonitored use of apps such as WhatsApp.
It said in a recent newsletter to the market :
Risks from misconduct may be heightened or increased by homeworking. This includes increased use of unmonitored and/or encrypted communication applications (apps) such as WhatsApp for sharing potentially sensitive information connected with work. Use of such apps can present challenges and significant compliance risks, since firms will be less able to effectively monitor communications using these channels.Market Watch, FCA newsletter
The FCA says that usage of apps for business must be auditable.
It also added that communications such as telephone calls should be continued to be recorded.
A firm to which the recording regime in SYSC 10A applies, must take reasonable steps to record telephone conversations and keep a copy of electronic communications of activities falling within scope of the recording rules.
The FCA reminds brokers that such monitoring falls under the remit of the SM&CR regime.