Tuesday, 9 July 2013

Questions (169)

Pearse Doherty

Question:

169. Deputy Pearse Doherty asked the Minister for Finance if phone calls between the Central Bank of Ireland and traders market-related phone calls are recorded; if the recordings are kept; and if he has requested that these tapes also be preserved for any banking inquiry. [33295/13]

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Written answers (Question to Finance)

The Central Bank has advised me that it is not their practice to record telephone calls with regulated entities, but that phone calls on landlines in investment firm trading rooms are generally recorded, although there are no specific regulations that require this. The question of the recording of phone calls by investment firms is being reviewed as part of EU negotiations on the Markets in Financial Instruments Directive (MiFID) and the Market Abuse Regulation (MAR). MiFID is currently the subject of negotiations between the Council and the European Parliament, while MAR cannot be finalised until MiFID negotiations are complete. When MiFID is finalised it is expected that Member States will be given 24 months in which to implement the Directive.

The Council position on telephone recordings in MiFID is that telephone recordings between investment firms and clients should be mandatory, subject to the client being notified of this in advance. The agreed position between the Council and European Parliament in MAR is that competent authorities will, subject to certain conditions, be able to access such telephone recordings.