FCA call recording compliance: What Microsoft Teams users must know

Financial services firms increasingly rely on Microsoft Teams to communicate with colleagues, clients and regulators. While Teams has transformed collaboration, it also brings new compliance challenges. For organisations regulated by the Financial Conduct Authority (FCA), communications made through Teams must meet the same call recording standards that apply to traditional telephony.

This article explains the key elements of Microsoft Teams call recording compliance under the FCA’s rules, what must be recorded and retained and how to align Teams with industry best practice.

What do the FCA rules say about call recording?

Firms authorised by the FCA are bound by regulations including MiFID II and SYSC 10A of the FCA Handbook. These rules make compliance call recording a mandatory requirement for firms involved in investment services, trading or handling client orders.

In practice, firms must record:

• Client orders and transactions: Any conversation that leads to a trade or financial instruction must be captured.
• Decision-related conversations: Calls where advice or recommendations are given must be logged to provide evidence of suitability and conduct.
• Internal conversations relating to client business: Teams discussions between staff that influence client orders or trading activity are also in scope.

The FCA’s position is clear: if a conversation could influence or result in a client transaction, it must be recorded, stored securely and made available for audit. This requirement applies equally to Teams as it does to desk phones or trader voice systems.

What challenges does Microsoft Teams introduce?

Teams is not a traditional telephony platform. It integrates voice, video, chat and collaboration in one application, which makes compliance more complex.

Multi-modal communication

Unlike legacy phone systems, Teams allows users to switch seamlessly between chat, voice and video. A client discussion might begin in chat, move to a call and end with file sharing. To remain compliant, all modalities must be captured.

Hybrid working

With hybrid and remote work now the norm, more regulated conversations are happening in Teams rather than in offices. Without the right policies and tools, these interactions may go unrecorded, exposing firms to compliance gaps.

Client and internal conversations

FCA rules cover both external and internal conversations relating to client business. That means Teams meetings between traders or advisers that inform decisions are just as important to capture as calls with clients.

Failing to include Teams in call recording compliance strategies risks leaving blind spots in regulatory coverage.

Retention and audit requirements under the FCA

Recording conversations is only part of the obligation. Firms must also retain those records securely and make them available for inspection.

• Retention periods: The FCA requires firms to retain call recordings for at least five years. In some cases, such as when requested by regulators, this can extend to seven years.
• Tamper-proof storage: Recordings must be immutable, meaning they cannot be altered or deleted during the retention period. Encryption and write-once storage are common methods used to achieve this.
• Search and retrieval: Firms must be able to retrieve recordings quickly in response to regulatory requests, audits or disputes. Metadata tagging and indexing support efficient search.
• Audit trails: Every access, playback or export must be logged to demonstrate the integrity of the record and maintain a chain of custody.

In short, FCA compliance is not just about recording—it is about recording in a way that ensures reliability, integrity and accessibility over time.

Best practices for Microsoft Teams call recording compliance

To remain compliant, financial services firms should adopt a structured approach that combines policy with the right technology.

Use certified software

Not all recording solutions are created equal. Organisations must ensure their Microsoft Teams call recording software can meet FCA requirements, including automated capture, retention policies and secure storage.

Capture all modalities

A compliant solution must capture voice, video, chat and screen sharing within Teams. Leaving out one modality creates gaps in coverage.

Automate recording and storage

Relying on users to press “record” is not acceptable in regulated environments. Recording should be automatic, triggered by policies assigned to regulated users.

Apply role-based access

Only authorised personnel, such as compliance officers or legal teams, should have access to recordings. Permissions must be strictly controlled and auditable.

Maintain audit trails

Every interaction with a recording should generate an audit log. This helps demonstrate compliance and preserves evidentiary value in disputes.

By embedding these practices, firms can close compliance gaps and build confidence in their recording strategy.

Choosing the right partner for FCA-compliant Teams recording

Selecting the right vendor is as important as having the right policy. Working with a Microsoft-certified partner provides assurance that the solution integrates properly with Teams and aligns with regulatory expectations.

Technical compatibility

Certified solutions are built to Microsoft’s standards, ensuring reliable recording across Teams modalities and reducing the risk of gaps.

Proven compliance features

The best providers offer features specifically designed for regulated industries, such as secure archiving, advanced search and flexible retention options.

Ongoing support

Compliance is not static. Regulations evolve, and Microsoft frequently updates Teams. Selecting experienced Microsoft Teams compliance recording partners makes implementation and oversight far easier, as they provide ongoing support and ensure systems remain compliant over time.

Conclusion

FCA call recording obligations apply fully to modern collaboration platforms like Microsoft Teams. Regulated firms must record all relevant communications, retain them for the required periods, and ensure they are secure, auditable and retrievable.

Meeting these requirements depends on more than policy. It requires the right software, certified partners and best practices that account for Teams’ multi-modal and hybrid nature. For financial services firms, Microsoft Teams call recording compliance is fundamental to demonstrating regulatory accountability and protecting clients and the business.