MiFID II

Currently, financial services firms are regulated by the Markets in Financial Instruments Directive (MiFID). From January 2018, an extension to this regulation (known as MiFID II) will be introduced, with the aim of creating greater transparency in financial markets.

One of the key effects of this new law will be that all telephone conversations and electronic communications relating to financial transactions must be recorded. The new rules apply to all investment firms, trading venues, data reporting providers and third-party firms providing investment or finance related activities in the EU and EEA, regardless of size.

 

– Extending the reach

At the moment, only conversations with individuals directly involved in a trade need to be recorded.

MiFID II advances this by stipulating that calls be recorded for anyone in the “advice chain” that could lead to a trade.

 

– Review calls

Businesses can comply with the current regulations simply by recording and storing calls. However, under MiFID II, compliance officers will be required to periodically review calls and be able to demonstrate this to regulators.

 

– Document policies

Organisations must be able to demonstrate to regulators that they’ve documented and implemented policies and procedures to oversee their mobile call recording requirement.

 

– Keep call data for five years

The retention period for call recordings is increasing significantly. Currently organisations need to retain their mobile call recording data for just six months, but MiFID II will extend this to a minimum of five years.

 

It is important that all financial services firms understand the new requirements of the legislation, the implications for their business and what steps they need to take to make sure they are compliant. Download our ultimate Guide to Mobile Recording here. If you’d like to know more you can also join our Chess O2 Mobile Recording Webinar on the 31st of October 2017 from 12 – 1PM. Click here to register.