“Robust record keeping and monitoring of communications is essential for firms to detect and investigate misconduct. It also serves as an important safeguard for firms in client disputes and litigation,” said the U.K. Financial Conduct Authority (FCA) in its report (Report) on regulated firms’ policies and practices for monitoring and preserving electronic communications. The FCA studied eleven regulated firms’ approaches to electronic communications that take place “outside of monitored, recorded channels a firm has permitted” (off-channel communications). All firms had improved their approaches to off-channel communications to some degree, according to the Report. On the other hand, most firms continued to observe violations of their internal policies by staff at all levels of seniority. This article parses those and other findings from the study, which hedge fund managers can use to assess their own handling of off-channel communications. Sharing the results of the study “allows firms to learn from others and reflect on their own approach,” noted the FCA. See “Study Reports on Financial Industry Policies and Controls Around Electronic Communications” (Apr. 10, 2025); and “ACA Compliance Testing Survey: Electronic Communications Displace Marketing As Top Concern” (Jan. 30, 2025).