According to FCA rules, how long must records be retained?

The Financial Conduct Authority (FCA) requires that firms retain records for a minimum of five years. This time frame is established to ensure that sufficient documentation is available for regulatory oversight and to protect consumers. Retaining records for five years allows for the appropriate traceability of transactions, as well as providing evidence in case of disputes or investigations.

This retention period is significant because it aligns with the FCA's objective to promote transparency and accountability within the financial services sector. It ensures that firms have access to historical data that can be critical in assessing market conduct, compliance with applicable laws, and the overall treatment of customers over time.

Shorter retention periods, such as one year, three years, or twelve months, do not meet the FCA's regulatory standards. These options would limit the ability of the firm to respond effectively to any queries from regulators or to provide necessary information to protect consumer interests. This underscores the importance of adhering to the five-year requirement for record-keeping as stipulated by the FCA.