On 18 March 2010, the FSA published a consultation paper entitled: “Taping: Removing the mobile phone exemption” (CP10/7). The FSA’s rules on recording voice conversations and electronic communications (taping rules) came into force in March 2009. Mobile phones and mobile communications, except e-mails, are currently exempt from the taping rules.

In CP10/7, the FSA proposes to remove the exemption. Firms will be required to record telephone conversations and to keep a copy of relevant electronic communications sent from mobile phones and other equipment issued for business use. The draft FSA instrument making the relevant changes, the Conduct of Business sourcebook (Recording of telephone conversations and electronic communications) (No 2) Instrument 2010, is set out in Appendix 1 to CP10/7.

Comments can be made on the proposals in CP10/7 until 14 June 2010. The FSA does not expect a decision to be taken on altering the rules until the fourth quarter of 2010. If the proposed change goes ahead, the FSA intends to allow firms a transition period of one year.

The European Commission will review member states’ discretion over their taping requirements as part of its wider review of the Markets in Financial Instruments Directive (MiFID), which is expected to be completed by the end of 2010. The FSA has decided to press ahead with its work in this area as any further EU requirements on telephone taping will not come into force for some time.

read more : http://www.fsa.gov.uk/pubs/cp/cp10_07.pdf