Firms Faced Scrutiny Over Teams Compliance Records
Financial institutions struggled to meet recordkeeping standards for digital communications in 2026.
Updated on Oct. 5, 2026 in Financial Services
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As of 2026, regulatory bodies highlighted that firms must utilize certified compliance tools to satisfy MiFID II recordkeeping mandates. Native Microsoft Teams recording capabilities proved insufficient to meet the necessary evidential standards for communications.
Why it matters
Financial firms are obligated to retain conversation content regardless of the platform used, making third-party certified solutions essential for compliance. Failure to properly capture these records exposes institutions to significant regulatory risk.
The FCA identified 178 policy breaches at 11 wholesale banks, with 41% of these violations involving staff at or above the director level. Furthermore, 52% of surveyed firms failed to capture trader voice calls, and 34% missed capturing online meetings.
The players
Financial Conduct Authority
The Financial Conduct Authority is the regulatory body for financial services firms and financial markets in the United Kingdom.
The details
Regulated institutions are required to retain communication records for five to seven years under MiFID II Article 16(7). Compliance recording must be automated by administrators to ensure records can be successfully reconciled against trade and call data.
Timeline
The MiFID II and MiFIR review was conducted in 2024.
The FCA published its off-channel communications review on 7 August 2025.
Teams became the primary telephony for regulated trading desks in 2026.
Market Landscape
This enforcement highlights a broader industry shift toward specialized compliance infrastructure as banks transition away from native digital tools. It signals a move toward consolidation among third-party vendors who provide certified recording services for financial institutions.
For employees at financial firms, this means stricter monitoring of internal communications as organizations implement mandatory recording protocols. Clients may notice increased disclosures or standardized workflows when interacting with financial services via digital platforms.
The takeaway
Firms must verify that their chosen communication software integrates with certified compliance tools to meet regulatory standards. Relying on default platform features for recordkeeping may result in systemic compliance gaps and potential policy breaches.
Further reading
For broader context, explore current standards in Financial Services.
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