Should we record our phone calls with clients? A perennial question that comes up more and more due to more compliance obligations, and more availability of call recording software. In fact most new phone systems record phone calls whether you like it or not! VOIP will usually automatically record the voice, which makes it mandatory to reveal to the other party that the call may be recorded – either on your website, in email signatures or in phone calls coming in.
There is an adviser (I’d rather not say who at this stage) who deals with (amongst others) illiterate gypsy community and he received written dispensation from the FCA to replace Suitability Reports with Phone call recording. Unfortunately it was accompanied by a tough confidentiality clause, making it difficult to disclose any more to you now. But COBS rules are clear – the explanation of a contract that must be made must only be made in durable medium – and this could be a phone call record just as much as a meeting record. It is a risky approach to go against the grain of normal process, but you can use phone recording to reduce your PII costs– and ensure that you have another line of defence to show to stakeholders such as complainants, regulators, potential ac quirers etc.