Banks: Databases

(asked on 23rd November 2015) - View Source

Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what steps the Financial Conduct Authority takes to ensure that banks comply with record-keeping regulations.


Answered by
Harriett Baldwin Portrait
Harriett Baldwin
This question was answered on 2nd December 2015

The Market Abuse Regulation (MAR) repeals the existing Market Abuse Directive with effect from 3 July 2016 and will have direct application in the UK. It is therefore necessary to make relevant changes to the UK’s existing domestic regime, which is set out primarily in the Financial Services and Markets Act 2000 and the Financial Conduct Authority (FCA) Handbook, to ensure that national law complies with MAR. The necessary changes are currently being considered by HM Treasury and the FCA.


In relation to record-keeping requirements, FCA rules require investment firms and credit institutionsto maintain orderlyrecords of theirbusiness, including all services and transactions undertaken by them. These mustbe sufficient to enable the FCAto monitor the firm's compliance with its regulatory requirements and retained for a period of at least five years. Therules alsoincludespecific requirements for firmstorecordtelephoneconversationsand electronic communications regarding client orders and dealing on own account. These must be retained for a period of at least six months.


The FCA supervises firms against therules, including on record keeping, as part of theirongoing supervisory work. The Financial Services and Markets Act 2000 permitsthe FCA to impose appropriate fines, which are not limited, for the contravention on a requirement imposed on them under the Act. The FCA are required to publisha policy statement setting outhow they determinethe appropriate level of financial penalty. This can be foundhere:https://www.handbook.fca.org.uk/handbook/DEPP/6/1.html?date=2015-10-27.


The EU Markets in Financial Instruments Directive (MiFID) introduced a harmonised framework for investor protection in the EU. The Government has supported a revised directive,MiFID II, which will replace itfrom 2017. MiFID IIintroducesmore detailed EU requirements on record keeping and an EU wide taping regime, aimed at strengthening investor protection and enhancing market integrity. This will also extend the period telephone conversations and electronic communications must be retained for to at least five years.​

Reticulating Splines