FCA to Delete “Unnecessary” Emails Automatically after 12 Months

The Financial Conduct Authority (FCA) has decided to automatically delete all emails after a year of receiving them unless they are considered important enough to be saved in data repositories, according to a Financial Times report.

Reducing Legal and Reputational Risk

A notice on the British regulator’s intranet page highlighted that the email deletion effort would start on 1 April and is aimed at reducing “the legal and reputational risk.” However, it will only delete emails received and sent after 1 April 2025, leaving those from before intact.

“Any emails that should be retained to comply with regulatory and legal requirements, including the Freedom of Information Act, will be saved,” the regulator noted in a statement sent to the publication, adding that deleting unnecessary emails will enable it “to retrieve information more efficiently.”

The regulator further stressed that it would train its staff on the policy to inform them which emails to keep under the Financial Services and Markets Act. Additionally, all information generated or received while carrying out regulatory duties must be kept for 25 years.

Impact on Probes into FCA’s Actions

Despite the assurances, the regulatory decision has raised concerns among staff and campaigners about the regulator’s accountability in scenarios that might arise after a year.

Additionally, there is the question of how the financial market watchdog’s staff would categorise important emails, creating a significant risk of failing to store crucial communications.

Furthermore, there are internal concerns about how the changes would impact responses to Freedom of Information Act requests.

Interestingly, the FCA mandates licensed investment firms to keep all email communications on record for a minimum of five years, while pension transfer specialists must keep them indefinitely. Other firms must also retain their emails for at least three years.

The FCA oversees all financial services firms within the UK and also takes enforcement action in cases of non-compliance. Recently, it fined a CFDs broker, Infinox, for failures in transaction reporting, marking its first enforcement action under the UK Markets in Financial Instruments Regulation (MiFIR).

Meanwhile, the regulator is considering easing some of the Consumer Duty rules, which have significantly increased compliance costs for UK financial firms.

The Financial Conduct Authority (FCA) has decided to automatically delete all emails after a year of receiving them unless they are considered important enough to be saved in data repositories, according to a Financial Times report.

Reducing Legal and Reputational Risk

A notice on the British regulator’s intranet page highlighted that the email deletion effort would start on 1 April and is aimed at reducing “the legal and reputational risk.” However, it will only delete emails received and sent after 1 April 2025, leaving those from before intact.

“Any emails that should be retained to comply with regulatory and legal requirements, including the Freedom of Information Act, will be saved,” the regulator noted in a statement sent to the publication, adding that deleting unnecessary emails will enable it “to retrieve information more efficiently.”

The regulator further stressed that it would train its staff on the policy to inform them which emails to keep under the Financial Services and Markets Act. Additionally, all information generated or received while carrying out regulatory duties must be kept for 25 years.

Impact on Probes into FCA’s Actions

Despite the assurances, the regulatory decision has raised concerns among staff and campaigners about the regulator’s accountability in scenarios that might arise after a year.

Additionally, there is the question of how the financial market watchdog’s staff would categorise important emails, creating a significant risk of failing to store crucial communications.

Furthermore, there are internal concerns about how the changes would impact responses to Freedom of Information Act requests.

Interestingly, the FCA mandates licensed investment firms to keep all email communications on record for a minimum of five years, while pension transfer specialists must keep them indefinitely. Other firms must also retain their emails for at least three years.

The FCA oversees all financial services firms within the UK and also takes enforcement action in cases of non-compliance. Recently, it fined a CFDs broker, Infinox, for failures in transaction reporting, marking its first enforcement action under the UK Markets in Financial Instruments Regulation (MiFIR).

Meanwhile, the regulator is considering easing some of the Consumer Duty rules, which have significantly increased compliance costs for UK financial firms.

This post is originally published on FINANCEMAGNATES.

  • Related Posts

    Revolut Faces $3.8 Million Fine in Lithuania for Money-Laundering Prevention Shortcomings

    In this webinar recording, Morgan Williams, Product Director at B2Core, delivers a comprehensive overview of how B2Core’s IB module empowers brokers to build and scale their Introducing Broker (IB) programs.…

    Following Match-Trade Integration, Centroid Partners with BlackArrow on Trading Tools

    FM Home > Retail FX > Following Match-Trade Integration, Centroid Partners with BlackArrow on Trading Tools Following Match-Trade Integration, Centroid Partners with BlackArrow on Trading Tools 2025-04-08T18:20:29.167+02:00 Tuesday, 08/04/2025 |…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Weekly Economic Calendar for 14.04.2025–20.04.2025

    • April 9, 2025
    Weekly Economic Calendar for 14.04.2025–20.04.2025

    What Are Tariffs and How Do They Affect Investors?

    • April 8, 2025
    What Are Tariffs and How Do They Affect Investors?

    Revolut Faces $3.8 Million Fine in Lithuania for Money-Laundering Prevention Shortcomings

    • April 8, 2025
    Revolut Faces $3.8 Million Fine in Lithuania for Money-Laundering Prevention Shortcomings

    Following Match-Trade Integration, Centroid Partners with BlackArrow on Trading Tools

    • April 8, 2025
    Following Match-Trade Integration, Centroid Partners with BlackArrow on Trading Tools