• COBS 6.8 COBS 6.8 Record Keeping

    • COBS 6.8.1 COBS 6.8.1 Record Keeping — Voice and Electronic Communications

      (a) Subject to Rule 6.8.1(b), an Authorised Person must take reasonable steps to ensure that it makes and retains recordings of voice and electronic communications that are:
      (i) with a Client or with another Person in relation to a Transaction, including communications relating to the receipt, execution, arrangement of execution of Client orders and passing of related instructions; and
      (ii) made with, sent from or received on equipment either provided by the Authorised Person to an employee or contractor or use of which by an employee or contractor has been sanctioned or permitted by the Authorised Person.
      (b) The obligation in Rule 6.8.1(a) does not apply to the following:
      (i) Corporate Finance Business;
      (ii) corporate treasury functions;
      (iii) communications between Fund Managers, or between Fund Managers and Eligible Custodians of the same Fund (when acting in that capacity); and
      (iv) voice and electronic communications which are not intended to lead to the conclusion of a specific Transaction and are general conversations or communications about market conditions.
      (c) To comply with Rule 6.8.1(b), an Authorised Person must:
      (i) be able to demonstrate prompt accessibility of all records;
      (ii) maintain records in comprehensible form or must be capable of being promptly so reproduced;
      (iii) make and implement appropriate procedures to prevent unauthorised alteration of its records; and
      (iv) retain all records of voice or electronic communication for a minimum of two years.
      (d) The effect of this Rule 6.8.1 is that an Authorised Person may conduct business over a mobile phone or other handheld electronic communication device but only if the Authorised Person is able to record such communications. Further, mere transmission of instructions by front office personnel to back office personnel within an Authorised Person would not ordinarily be subject to this Rule.

      • Guidance

        The effect of Rule 5.8.1(b)(iv) is to exclude from Rule 5.8.1(a) conversations or communications made by Investment Analysts, retail financial advisers, and persons carrying on back office functions.

    • COBS 6.8.2 Records of Orders and Transactions

      (a) When an Authorised Person receives a Client order or in the exercise of its discretion decides upon a Transaction, it must promptly make a record of the information set out in Rule 11.1.1.
      (b) When an Authorised Person Executes a Transaction, it must promptly make a record of the information set out in Rule 11.1.2.
      (c) When an Authorised Person passes a Client order to another Person for Execution, it must promptly make a record of the information set out in Rule 11.1.3.
      (d) An Authorised Person must retain the records required in Rules 6.8.2 for six years from the date on which the order is allocated.