Financial Reforms Bring About Increased Use of Call Recording Technology

Financial Reforms Bring About Increased Use of Call Recording Technology

Last Updated on January 30, 2019


The “Great Recession” brought with it a slew of new regulations for our financial markets. Real estate, securities, commodities and banking have all been affected.

Perhaps the largest and most well-known financial reform is 2010’s Dodd-Frank Wall Street Reform and Consumer Protection Act.

  • This sweeping legislation tightened capital requirements on large banks and other financial institutions
  • Required derivatives to be sold in clearinghouses and exchanges
  • Limited institutions ability to trade with customer money for their own benefit
  • Required that companies doing regulated training must create records for all communications leading to trades being established
  • Created the Consumer Financial Protection Bureau to stamp out abusive lending products and the companies selling them.

The result is a mandated waterfall effect of industry governing bodies and organizations adding additional security measures, reforms, and rules designed to make sure transactions are fair, executed properly, and documented. A recent example is the final rules published by the CFTC (Commodity Futures Trading Commission). As a result, futures commission merchants, larger introducing brokers, retail foreign exchange dealers, and commodity trading advisors that are members of a designated contract market or swap execution facility must record oral communications that lead to the execution of a commodity interest transaction.

The recording requirement covers oral communications that lead to the execution of a transaction in a commodity interest, as well as related cash or forward transactions. This includes communications concerning quotes, solicitations, bids, offers, instructions, trading and prices. Recordings must be retained for one year and must be available for retrieval as separate electronic files.

The rules went into effect on February 19, 2013 with call recording compliance being mandated by December 21, 2013. However, entities may request an alternate compliance date if they’ve tried in good faith to enact the changes but are finding it impracticable to do so for either technological or financial reasons.

The challenge of complying with the new rules by year’s end creates an amazing opportunity to invest in a call recording system that fulfills all the CFTC requirements while providing flexibility and scalability. Versadial’s solutions are priced attractively and completely customizable. Record incoming and outgoing calls on a variety of formats including digital PBX, ISDN and VoIP. Secure them and access them for later retrieval from our easy-to-use software.

In addition to recording CTFC members, banks, credit unions and mutual fund companies also must record calls involving transactions. Not only are there compliance and legal benefits to be gained from call recording but there are massive benefits in the customer service realm. Call recording and monitoring can be used as the foundation of customer service and sales rep development.

Completing quality assurance reviews on recorded calls and live observations allows supervisors to determine areas of focus for each representative. Additional training, feedback or performance management can be provided to reps to either help them grow in their roles or find the roles that best suit them. Supervisors have the flexibility to provide immediate intervention or work on development at scheduled intervals. What better and more targeted training is there than to listen to your own calls. Your supervisor can provide feedback and suggestions on what can be done differently in the future or praise you for a job well done.

The road to compliance, protection and employee development begins with a call to Versadial to set up a demo of our solutions.

Last Updated on January 30, 2019