The Financial Services Authority announced today that “relevant communications made with, sent from or received on mobile phones and other handheld devices must be recorded and stored for six months.” The new rule is expected to cost banks at least 10,000 pounds ($16,000) per phone, per year, which they are none too pleased about, especially given the pointlessness of the exercise. Is the UK regulator aware of the fact that if someone wants to insider trade, they’re gonna find a way, regardless of their work phone being tapped (like, for instance, using a personal phone or meeting in person to trade hot tips) and that the only thing they’re going to determine from these calls is which banks employ the highest number of bondage and clown fetishists? Yes, and they don’t care.

One investment bank told the FSA that it would cost 500,000 pounds monitor the calls of 50 users. Another global investment bank said the cost of recording BlackBerrys issued to front- office staff would be more than 2.6 million pounds a year, the FSA said.

“Many respondents’ argued that the benefits will not materialize as a result of individuals circumventing the rules,” the FSA said today. “It is true that determined and inventive individuals will always find ways to evade the rule. It is our contention that by having as comprehensive a taping regime as possible we limit the scope or temptation for employees to infringe the market abuse rules on fixed or mobile lines which are not taped.”

U.K. Regulator Adopts Mobile-Phone Taping Rules Over Protests From Banks [Bloomberg]

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Comments (20)

  1. Posted by Boof MBA | November 11, 2010 at 5:54 PM

    Did anyone see that Bberg article about Booth? Yeah! Suck it Wharton! And all you CFA bitches – you know what you can do. It involves suction.

  2. Posted by Hmm | November 11, 2010 at 5:59 PM

    Why does everyone hate on the suck? Suck is good.

  3. Posted by Rho2Gamma | November 11, 2010 at 6:21 PM

    Duke moved up 2 spots. Every business longs for employees with kick arse ppt skills.

  4. Posted by trojan | November 11, 2010 at 6:22 PM

    they don’t call it the Suck for nothing
    -Pfc. Jarhead
    San Diego, CA

  5. Posted by AmericanBandersnatch | November 11, 2010 at 6:23 PM

    Yes, but the whole point of the recording machine is lost if you don’t keep it a secret! Why did you tell the world, eh?
    - Dr. S

  6. Posted by ExtraOrdinaryPopularDelusions | November 11, 2010 at 6:25 PM

    Dear FSA Chairman,

    This seems like a duplication of effort. Give me a ring. I’m sure we could work something out.

    General Alexander
    NSA

  7. Posted by Bill Blazejowski | November 11, 2010 at 6:39 PM

    You know, these traders could still discuss tips over lunch, say tuna sandwiches. Wait a minute! Why don’t they just put microphones with the tuna in the can… HOLD THE phone! Why don’t they just FEED the tuna fish microphones?!

  8. Posted by Sea-going Bellhop | November 11, 2010 at 6:45 PM

    Semper Fi, Mac.

  9. Posted by CurrencyTrader | November 11, 2010 at 7:17 PM

    You said ‘clown fetishists’.

    It moved.

    -Jim Skinner

  10. Posted by Chuddy | November 11, 2010 at 7:22 PM

    let’s cut the fucking bullshit and down to brass tacks……..Drury looks absolutely fucking incredible with her hair straight and her cleavage out………..she will be first in the old spank bank this evening…..

    that is all, carry on you fucking douchers

  11. Posted by Guest | November 11, 2010 at 7:30 PM
  12. Posted by Texashedge | November 11, 2010 at 7:32 PM

    You know how the FSA loves suprises

  13. Posted by Guest | November 11, 2010 at 7:38 PM

    Say a prayer for Surfy Boy, wherever he is.

  14. Posted by Guest | November 11, 2010 at 7:56 PM

    That’s a good point. Why not use Echelon for this?

  15. Posted by Guest | November 11, 2010 at 8:00 PM

    …especially at JPMorgan. You can’t get anything done unless you master the 85-page deck in Trebuchet MS 10 pt. font.

  16. Posted by Bwahaha | November 11, 2010 at 8:09 PM

    Where are all the UBS haters? Did UBS finally hire them all?

  17. Posted by Dead_Cat | November 12, 2010 at 2:53 PM

    Well, if they’re anything like the SEC you can tell them to their face that you’re insider trading and they still won’t realise. They might like the clown fetish stuff though – I hear they’re more deviant than the SEC.

  18. Posted by Anon | November 12, 2010 at 6:18 PM

    $16k/phone/yr ? wtf??? It seems all you would need is a piece of software and hard disk space

  19. Posted by Guest | November 11, 2010 at 7:56 PM

    Yeah, I can’t work right now… it’s standing up.

  20. Posted by Guest26 | November 12, 2010 at 5:05 PM

    Long pre-paid phones…