If you operate as a financial advisor, insurance or mortgage broker, then you will be regulated by the Financial Services Authority (FSA) and responsible to the Financial Ombudsman Service (FSO)
Under this jurisdiction, such organizations are required, by law, to keep records of all transactions. Although this does not call for mandatory call recording, the FSA issued a statement in May 2007 which stated that: ‘the prevention, detection and deterrence of market abuse is a key priority for the FSA. Good quality recordings of voice and electronic communications assist firms and the FSA in the detection of inappropriate behaviour, and in its investigation and punishment.’
The FSA requires that all staff are trained and competent in their work, so that it is compliant with their rules. Phone call recording systems are one of the best ways of illustrating competence and compliance in all communications. Many European countries such as Germany, Italy, France and Spain require insurance brokers to record their calls by law. Experts are predicting that it will only be a matter of time before such measures are enforced here in the U.K.
In February this year, the FSA banned one trader for using high pressure sales tactics and misleading customers. Traders can expect a similar fate if they fail to comply with guidelines. Call recording is one way to ensure that your business covers it back in this respect.
Financial Ombudsman Service
The Financial Ombudsman has a duty to investigate complaints using FSA rules where a customer’s complaint has not been settled by their insurance intermediary within eight weeks.
The FOS will use phone call recording systems as a deciding factor in dealing with complaints. By recording your calls, you could provide vital evidence to support your business in any disputes.
Here is what one leading insurance company spokesman had to say about call recording systems:
“As insurance brokers it is essential that we follow our clients instructions exactly and also have a record of any information given by Insurers, we decided to record all incoming and outgoing telephone calls. We scoured the market and found that systems that record all lines centrally were expensive, so we decided that it would be more economical to use a device to record the calls from each individual extension directly on to the employees computer and chose Retell for its simplicity in installing and setting up, and its performance in giving high quality recordings.”
Big Box stock a full range of call recording software and equipment from market leaders ReTell. To find out more, click here.