The Financial Services Authority (FSA) has created a new
set of rules that require all investment firms to record electronic
communications to help the FSA fight market abuse.
From March next year, companies making investments for clients
will have to
retain all electronic data as well as telephone conversations
related to the customer's investment for six months.
"We expect this to act as a deterrent or a way to gather
information if there is a suspicion of market abuse," said an FSA
spokesperson.
After consulting the industry, the original plan to force
companies to retain the data for three years was because of fears
over excessive costs.
"Following responses from the industry and concerns over costs,
we cut the period to six months," said the spokesperson.
