In Regulatory Wrap for the week to September 27, Jay Hampshire considers the FCA’s future objectives after recent action concerning off-channel communications.
In this Regulatory Wrap, we dissect a survey released by the Financial Conduct Authority (FCA), which requests that firms divulge details about confirmed breaches of encrypted messaging policies, suggesting that the regulator is increasing concentration on communications compliance.
1. The survey asks that firms provide “a list of confirmed breaches of unmonitored and encrypted application policies” occurring within the last 12 months
2. In addition to this, the FCA wants to know how senior the involved individual was, how the breach was discovered, and the following disciplinary outcomes
3. Considering recordkeeping failure enforcements issued by U.S. regulators over the past years – which have totaled over $3 billion dollars – this move leaves regulated firms wondering how the FCA will approach communications compliance moving forward
4. As many U.S. regulatory enforcements found that senior staff were involved in off-channel comms, the FCA’s inquiries about individuals’ seniority portray a common interest in conduct and culture
5. While the industry waits to see what next steps could be, the survey should serve as an important reminder that firms are expected to have their communications and surveillance policies in order
This episode is brought to you by our Senior Content Writer, Jay Hampshire.
With both U.S. and U.K. regulators establishing their stance on off-channel communications, can you confirm your communications capture and surveillance policies are meeting regulatory expectations?
