In its ‘near final rules’ on Mifid II, the regulator said it would not be “proportionate” to make smaller adviser firms tape every phone call they had with clients.
However, it confirmed the same flexibility would not stretch to larger regulated investment firms.
Instead, firms will be able to choose between a tape or written note as a record of the conversation.
In its report the FCA said: “The business model of many of these firms is such that a full taping obligation may not always be proportionate.
“As such, we will propose that these firms, irrespective of size, can comply with the ‘at least analogous’ requirement by either taping all relevant conversations or taking a written note of all relevant conversations.”
The FCA based the decision on an industry consultation and will clarify what information should be included in the written record when final rules are released in June this year.
The near final rules also cover the new category of firms, reporting for commodity derivatives and the system and control requirements for firms providing Mifid investment services.
The regulator has urged firms to submit applications for authorisation, as some will need to be authorised for the first time and others may need to alter their permissions.
