United Kingdom Recordkeeping Regulations

In the United Kingdom (U.K.), one of the key creators of financial regulations is the Financial Conduct Authority (FCA), which is an independent organization that regulates financial firms and protects the integrity of U.K. financial markets.

As with the SEC and FINRA in the United States, the FCA takes the approach that the mode or channel of communication is largely irrelevant. What is far more important is the content of any given communication. 

Through its “Finalised Guidance” document, the FCA states that: 

• Firms should aim to be clear and fair in all communication and never mislead investors;
• Any post or piece of content that encourages (or incentivizes) financial activity has the potential to be deemed a financial promotion under FCA rules;
• All tweets, posts, etc. need to be considered on their own merits and follow all relevant rules;
• As with all promotions, firms should make potential investors aware of both the risks and potential benefits of an investment product;
• Although we tend to think of social media communication as rather fleeting and ephemeral, a record is created each time we post or tweet, which is why FCA defines social media communication as ‘non-real time;’
• Recordkeeping of social media content is required. The FCA states that “we expect firms to perform risk management in this area and assess for themselves what they consider ‘significant communications’ to keep records of. When making this assessment firms should bear in mind the need to demonstrate compliance if required to do so, as well as queries and complaints from customers which may require evidence.”  

According to the FCA, archiving and record retention of digital content is important in protecting consumer and investor data and keeping the company’s integrity intact. After all, the goal of the FCA is to ensure safe and honest markets for individuals, organizations, and the economy as a whole.

Although the FCA guidance regarding online data is not itself a regulation that financial services need to comply with, it does show what organizations need to do in order to ensure that their use of online channels and platforms conform to existing recordkeeping rules.