What is it and what does it mean for my business?
MiFID II Call Recording Compliance
What is MiFID II?
MiFID II is new legislation to enforce the capture and retention of communications between a company and its customers.
Who does it effect?
It is a requirement for any company or individual that undertakes business of a financial nature, this includes Banks, Enterprise finance houses as well as smaller, or independent financial advisors.
When do I need to be compliant??
MiFID II compliant systems need to be in place by the 3rd of January 2018
The revised Markets in Financial Instruments Directive (MiFID II) is designed to make the financial market more efficient and resilient, as well as better protecting the investor. The new Directive comes into force on 3rd January 2018 and focuses on organisations having clear and effective call recording policies in place to record all relevant calls.
Under current MiFID I regulations, there is some discretion allowed as to whether companies record telephone calls and electronic communications that may, or may not, result in transactions. This changes under MiFID II. Companies will need to record all conversations that are intended to lead to a transaction or trade, even if they eventually don’t.
Whereas some companies were exempt under the MiFID I Directive, MiFID II extends the need to record transactions to virtually all parties involved in providing advice. This means that the remit of MiFID II will include many “article 3 firms” such as IFA’s and boutique corporate broking firms that were previously exempt.
The key requirements of MiFID II call recording regulations are:
- All telephone conversations and electronic communications must be recorded that are intended to result in a transaction, even if they don’t.
- All conversations, irrespective of the device used or location where the conversation took place must be recorded. This includes email, mobile phone and landline calls.
- All call records must be readily available and accessible.
- All call records must be searchable and retrievable.
- All call records must be securely stored and made available to clients for at least five years.
- All clients must be advised that their telephone calls are being recorded.
How On-Phone and On-Mobile ensure that you are compliant
- All phone calls on the life-time recording option of the On-Phone platform are recorded forever.
- All mobile phone calls and texts, whether they are sent or received, on the life-time recording option are recorded forever.
- All recording files are fingerprinted and securely encrypted to ensure compliance.
- All calls have a complete audit trail, accessed through ‘Call Analytics’.
- All call recordings can be accessed and retrieved, but only by authenticated users.
- Both the On-Phone and On-Mobile platform are fully PCI DSS compliance.
- For complete transparency, screen grabbing from mobile phones is available as an option.