The FSA has published its proposals for a new set of new rules allowing for the taping of mobile telephone calls made by investment bankers and traders. Previously, mobile telephone calls were exempt from the recording rules, and at present only office land lines and emails are recorded. The new rules will change this because firms will be obliged to record “relevant communications” of employees which are conducted on mobile devices for business purposes. “Relevant communications” refer to “voice conversations and other electronic communications that involve the receipt of client orders and negotiating, agreeing and arranging transactions in the equity, bond and financial and commodity derivatives markets.” Under this definition, the rules will only apply to mobile telephones and devices issued for business purposes, rather than privately owned devices. However, firms will be required to take reasonable steps to ensure that relevant communications do not take place on private mobile telephones or the equivalent, which firms cannot record for privacy reasons. The FSA’s consultation paper says that there are a couple of ways in which firms will be able to comply with the rules. These include: (a) continuing to allow the use of mobile phones to make relevant communications and to record these communications; or (b) developing internal policies to prevent relevant communications from taking place on mobile phones. The purpose of the new rules is to remove the scope for circumventing the current rules, eliminate the risk of fraud and insider trading, and enhance the FSA’s market monitoring and enforcement functions.