In one-party statute states, the only issue is whether the registered person knows of and consents to the tape recording. The recording requirement would run to the firm, and the equipment would be the firm s. Therefore, it would be necessary for the firm to ensure that the person has notice and consents to the tape recording of his or her telephone conversations. This could be accomplished through a clause in an employment agreement or employee handbook or other written notice to the registered person. In two-party statute states, it would be necessary to insert on the firm s telephone line a recording stating that all telephone conversations are being taped, similar to customer service lines in other industries.
Some states require a system of beeps or buzzers that sound throughout the conversation.
Some states also have a business use exception to the two-party statute consent requirement, but it is worded and applied differently in each state. This list is comprised of firms that were disciplined within the last three years and was compiled based on information available as of June 15, 1998. All rights reserved.