To whom does it apply and from when is it in enforceable:
From the 3rd of January 2018 this newly evolved piece of regulatory law became enforceable. Markets in Financial Instruments Directive 2004 applies to any company that performs investment services and activities.
Call Recording for MiFID II Compliance
The Markets in Financial Instruments Directive is the EU legislation that regulates firms who provide services to clients linked to ‘financial instruments’ (shares, bonds, units in collective investment schemes and derivatives), and the venues where those instruments are traded. MiFID II legislation requires any company or employee to record all calls, across mobile and fixed lines that include financial advice that could lead to a trade.
5 key requirements for MiFID II
- Record and keep calls containing financial advice
- Recordings stored for 5 (or 7) years
- Secure and restricted access
- Retrieval upon request
- Audit Trailing individual recording activities
Through our portfolio of best-in-breed hosted call recording platforms, we can fulfil these requirements.
Total Coverage
Under MiFID II, the implication for your business is that all of your telephone calls relating to financial advice – whether or not a trade or transaction is made – must be recorded.
In addition to standard IP desk phones, the service can include software apps for desktop and mobile devices, ensuring that all calls made using these apps on all platforms can be recorded.
Best Practice Security
The call recording platform is placed in the cloud. Our call recording solutions use the UK branch of the Amazon Web Services (AWS) network, and therefore adhere to all data storage standards of this network.
All recordings are fully encrypted using 256-bit advanced encryption (AES-256), and can only be accessed via SSL in a web browser by the customer with their dedicated username and password.
Note that although the service provider manages and maintains the call recording service on the customer’s behalf, the permissions of the call recording platform prevent the service provider from accessing any customer recordings.
Long-Term Storage (5 years+)
In the UK, it is recognised that under MiFID II call records should be kept for a minimum of five years. The call recording service providers advocate keeping your recordings online to better facilitate your compliance. If you download your recordings to another repository, then the security and availability of this other repository will become relevant to your compliance.
Simple Searching
The call recording platform provides powerful search tools to help you identify calls by date, time and caller/called number. It is also possible to ‘tag’ calls, and search these tags later for ease of reference.
Elevate to call transcription service and you can also search key words spoken during your telephone calls.
Full Audit Trail
To better facilitate your compliance, recording platforms make note of exactly what recordings are accessed by who and when. This data can be made available upon request.
To download our ‘Jargin free guide to MiFID II call recording’ click HERE
