Press Release: March 25, 2010
Just to provide an ample of security to the overall economy of the UK, The Financial Services Authority has come up with a proposal to tape mobiles of those who play a significant role in the trading. The move has been taken with an intention to crack down specifically on the edifice of insider trading. According to the FSA, the proposal has been brought forward to curb the tendency of amassing wealth through wrongful means.
The conversations, which have been brought under the purview is primarily all the relevant communications, which are carried out by their traders on company issued handsets. The financial regulator has come up with an estimated 16,000 phones, which needs to be brought under the category of tapping. The current decision, if implemented in time, may burden the services industry by nearly 11 million British pound sterlings.
The proposal has been put forward whereby implementation would be in installments. In the wake, the additional 18 million British pound sterling has been foreseen to be spent on to maintain the structure on annual basis. The current decision has an historical angle as well. As we take into account the last year's intention of the same agency, we find that FSA introduced similar kind of rules. In fact, it was proposed earlier to record and store for six months all conversations on company telephones excluding mobiles and e-mail correspondences.
However, the current paper clearly mentions the mobile phones in its provisions. As the FSA has proposed to tape the mobile conversations of the few, the move has been inspired by the advancing technology as well. The process of taping calls is simple as it can be done through a remote server on the handset itself. The retrieval of the conversation is further easy as it can be done inhouse or outsourced hosted server.
It seems that U.K. financial firms are likely to accept the current decision, however it will be difficult for them to prevent trades from taking place on personal mobile phones.