Nine out of ten city CIOs on course for prosecution by FSA
Over 90 per cent of city firms could face prosecution in November for failing to comply with new FSA regulations on call recording, according to one study.
With November's deadline for meeting the Financial Services Authority's new rules on call recording looming ever closer, a survey has shown that 91 per cent of chief information officers (CIOs) have yet to begin their installation process.
With mobile call recording system installations taking an average six months to implement, many city based CIOs could face prosecution at Christmas.
The study, conducted by mobile operator Tru and service provider Obsidian Wireless was conducted in July among 100 CIOs in the City of London.
Of the CIOs quizzed, only 9 per cent of companies have a compliant solution in place. However, 70 per cent have not even started a project and admitted they were still undecided on how to comply with the regulation.
Those surveyed gave three main reasons for failure to act - too many types of handset, too much delay involved in recording and too little compatibility between systems.
Telco analyst Jeffrey Peel, MD of Quadriga Consulting, said CIos haven't taken the challenge seriously.
"The FSA can impose fines and has done so in the past where lack of recording was considered a major issue in dispute cases," said Peel. "Most companies have been aware for some time that the FSA would be making this requirement."
The financial services needs a solution which is seamless to use, is rapid to deploy and which works across all GSM handsets, argued Geraldine Wilson, CEO of Tru. She claimed Tru and Obsidian is "solving the headache of FSA compliance."
This was first published in September 2011