LifeQuote expects all forms of over-the-phone financial advice to be recorded in the wake of the announcement that Mifid rules will require all phone investment advice to be recorded.
The Financial Conduct Authority is consulting on how the legislation will be implemented until 4 January 2017 and from 3 January 2018 the rules will come into force.
LifeQuote, which provides protection tools and administration, introduced 100% call recording over nine years ago in the expectation that it would be a mandatory requirement for advisers.
Neil McCarthy, sales and marketing director of LifeQuote, said: “I’m a little surprised that it has taken until now to make it mandatory for any telephone based investment advice to be recorded.
“I also expect this to become a requirement for many other areas of advice in the future, especially as more advisers and insurers offer remote offerings.
“Disputes do happen and without the record of what was said, it’s ones word against another. In protection advice deliberate non-disclosure or typically lack of disclosure does happen.”
He added: “Whilst the focus of the recent press comments have been about consumer protection, the recording of the application data by a third party does give the adviser protection over any errors in completing an application form, that may lead to a dispute at a future claim.
“The biggest challenges for advisers going forward, unless they choose to outsource client follow-up, will be cost and complying with data protection regulations.
“As society becomes more litigious, I personally feel this should be adopted in advice scenarios wherever possible, and not just investment related advice as it really does protect the adviser as well as the consumer.”