Apfa calls on FCA to drop Mifid II call recording rules
Apfa is urging the FCA not to “gold-plate” the telephone recording requirements in Mifid II because the measure is disproportionate for the adviser market. Apfa was responding to the FCA’s third Mifid II consultation paper, published in September, which included the suggestion to extend the recording requirement to all “Article 3” firms, which includes financial advice firms and corporate finance boutiques.
Under Mifid II firms are required to record telephone conversations and electronic communications that relate to “the reception, transmission and execution of orders, or dealing on own account” and keep them for five years.
Apfa says it believes the call recording requirement will be particularly costly for small firms.
Its consultation response reads: “These costs would inevitably be passed on to consumers, running counter to the objectives set out in FAMR of making financial advice more accessible to the mass market. For these reasons we believe it would be disproportionate to require firms to record their calls and electronic communications.”
Speaking at the time the consultation paper was published, FCA policy, strategy and competition director David Geale said the requirement to record calls would not place an undue burden on IFAs.