CMCOB 2.4 Record keeping

1Firms are reminded that SYSC 9.1.1R requires a firm to arrange for orderly records to be kept of its business and internal organisation, including all services and transactions undertaken by it, which must be sufficient to enable the FCA to monitor the firm’s compliance with the requirements under the regulatory system, and in particular to ascertain that the firm has complied with all obligations with respect to clients.

Firms are also reminded that SYSC 9.1.5G states that in relation to the retention of records, a firm should have appropriate systems and controls in place with respect to the adequacy of, access to, and the security of its records so that the firm may fulfil its regulatory and statutory obligations. With respect to retention periods, the general principle is that records should be retained for as long as is relevant for the purposes for which they are made. For these purposes retaining records would include keeping all text messages, emails, and other electronic communications between the firm (or a person acting for the firm) and a customer.

As a minimum, firms should retain records in their files of any advice given to, and correspondence with, their customers, and of any correspondence with third parties in the course of their providing services to their customers.

CMCOB also imposes a number of specific record-keeping requirements: see Schedule 1.