FCA CP24/24 and PS25/13: Structural Reform, Regulatory Continuity, and the Ongoing Importance of Communications Recording

In late 2024, the Financial Conduct Authority (FCA) published Consultation Paper CP24/24¹ proposing the transfer of the MiFID Organisational Regulation into the FCA Handbook. In October 2025, the FCA finalised this work through Policy Statement PS25/13².

For regulated firms, the development raised an immediate question: does this reform materially alter existing compliance obligations, particularly in relation to communications recording and archiving?

After examining both CP24/24 and PS25/13, the position is clear. The reform represents a structural migration of rules into the domestic Handbook. It does not substantively narrow or dilute communications recording requirements. The obligations remain intact, but they now sit squarely within the UK rulebook.

The Regulatory Context Behind CP24/24

Following the UK’s departure from the European Union, significant portions of EU-derived financial services legislation were preserved in UK law as Assimilated Law (formerly referred to as retained EU law). The MiFID Organisational Regulation — including its detailed requirements on governance, conflicts, outsourcing and communications recording — formed part of that framework.

CP24/24 proposed transferring those provisions into the FCA Handbook in order to:

• Consolidate firm-facing requirements within a single domestic rulebook
• Align drafting with FCA conventions
• Remove reliance on Assimilated Law legislative architecture
• Enable future UK-specific regulatory development

Importantly, the FCA signalled that this was not intended to be a deregulatory exercise. The consultation focused on restating the rules, not reducing their scope. PS25/13 confirmed that approach.

What PS25/13 Implemented

Policy Statement PS25/13 finalised the migration of the MiFID Organisational Regulation into the FCA Handbook. The Assimilated Law version of the regulation was revoked and replaced with Handbook provisions, primarily within SYSC and COBS.

From a legal architecture perspective, this is significant. Firm-facing obligations now sit directly within the FCA’s domestic supervisory framework. However, from an operational standpoint, firms will recognise the underlying requirements as substantially unchanged.

The key impact is therefore documentation and governance alignment rather than systems redesign.

It is worth noting that PS25/13 did introduce one substantive policy adjustment outside the organisational and communications sphere: the definition of a Systematic Internaliser (SI) was moved from a quantitative threshold-based test to a qualitative assessment framework, effective from December 2025. This reform relates to market structure classification rather than communications recording or record-keeping obligations, but it represents an important development for trading firms and market participants.

Communications Recording: The Substantive Position Remains

Among the organisational requirements addressed by CP24/24, communications recording is one of the most operationally significant.

The provisions previously contained in Annex I of the MiFID Organisational Regulation are now reflected in the FCA Handbook, primarily within:

• SYSC 10A: Recording telephone conversations and electronic communications³
• SYSC 9: General record-keeping requirements⁴
• Relevant COBS cross-references

The scope remains broad and outcome-focused.

Firms must continue to record telephone conversations and retain electronic communications that relate to regulated activities in financial instruments. This includes communications that may lead to a transaction, even where no transaction ultimately occurs.

The obligation extends beyond executed trades. It captures:

• Order discussions
• Client instructions
• Investment advice conversations
• Pre-trade negotiations
• Internal communications connected to regulated activity

There is no reduction in scope under PS25/13.

Off-Channel Communications: Governance Expectations Continue

The Handbook rules continue to require firms to take all reasonable steps to prevent employees and contractors from conducting regulated business communications on privately owned devices or unapproved channels where those communications cannot be recorded.

This remains a systems and controls obligation, not merely a policy statement. Firms are expected to demonstrate:

• Clearly articulated communication policies
• Appropriate device and platform controls
• Monitoring capability
• Governance oversight

The migration of the rules into the Handbook does not relax supervisory expectations in this area. If anything, embedding the requirements within SYSC reinforces their importance within the FCA’s domestic framework.

Retention and Archiving Standards Remain Unchanged

Retention periods remain consistent with prior requirements. Records must be retained for at least five years, with the FCA retaining the power to require retention for up to seven years where appropriate.

Qualitative archiving standards also remain intact. Records must be stored in a durable medium, be capable of accurate reproduction, and be readily accessible for regulatory supervision.

The FCA does not mandate a specific technology solution. However, firms must be able to demonstrate that their archive:

• Preserves integrity
• Prevents undetected alteration
• Maintains metadata
• Supports efficient search and retrieval
• Enables timely export for regulatory review

The structural reform does not dilute these expectations.

What Changed in Practice

The primary changes introduced through CP24/24 and PS25/13 are structural. The legal source of the obligations has shifted from Assimilated Law regulation text to FCA Handbook provisions. Drafting has been aligned with UK rulebook style, and cross-references have been consolidated.

There was also a clarification of the definition of “durable medium” within the Handbook glossary, particularly in relation to electronic delivery to retail clients. This adjustment primarily affects disclosure mechanics rather than the scope of communications recording itself.

No narrowing of recording requirements has occurred. No shortening of retention periods has been introduced. No reduction in archiving standards has been granted.

The reform is best understood as regulatory consolidation.

Supporting Communications Governance in Practice: The Role of Argus Archive

Although CP24/24 and PS25/13 do not alter the substance of communications recording obligations, firms continue to face increasing complexity in implementing them effectively.

The modern communications environment extends well beyond traditional telephony. Regulated business discussions now occur across voice platforms, collaboration tools and multi-channel workflows. Governance therefore requires more than simple storage.

Argus Archive is designed to support UK regulated firms in meeting these governance and archiving expectations.

The platform enables structured capture and normalisation of communications across modern enterprise environments, including collaboration platforms such as Microsoft Teams. By consolidating communications into a unified archive, firms reduce fragmentation risk and strengthen evidentiary integrity.

From a regulatory perspective, the emphasis is not only on capture but on defensibility. SYSC 9 requires durable, reproducible and accessible records. Argus Archive supports this through:

• Tamper-resistant storage architecture
• Comprehensive audit trails
• Metadata preservation
• Policy-driven retention management aligned with five- and seven-year requirements

In addition, governance is strengthened through investigation-ready workflows. Advanced search, case grouping, tagging and export functionality support internal reviews, regulatory enquiries and dispute management processes.

The objective is to move beyond passive storage toward structured communications governance – aligning archiving practices with the FCA’s supervisory expectations under SYSC 10A and SYSC 9.

Frequently Asked Questions (FAQ)

Conclusion: Structural Reform, Substantive Continuity

CP24/24 and PS25/13 represent an important regulatory milestone. The MiFID Organisational Regulation has been formally migrated into the FCA Handbook, consolidating the UK’s post-Brexit supervisory framework.

However, for communications recording and archiving, the substantive message is continuity.

Firms remain required to:

• Record relevant telephone and electronic communications
• Prevent or control off-channel business communications
• Retain records for at least five years (and up to seven where required)
• Store communications in a durable, retrievable and defensible manner

The reform changes the structure of the rulebook, not the expectations placed upon firms.

For regulated institutions, the focus now should be on ensuring that governance frameworks, technical architecture and compliance documentation align with the updated Handbook provisions – while maintaining robust communications oversight in an increasingly complex digital environment.

On this page

↑ Back to top