MiFID II will replace the original Directive from January 2018, bringing with it changes to many aspects of business conduct, including more robust rules centred on recording and storing of conversations.
The Markets in Financial Instruments Directive (MiFID) is a set of reforms for the financial industry, first introduced by the EU in response to the 2008 financial crisis.
The regulations state organisations providing financial services to clients must record and store all communications leading towards a transaction. This includes organisations giving advice that may lead to a trade or investment.
What needs to be recorded?
Under the current MiFID regulations, all fixed line and mobile calls must be recorded and stored for at least six months. The requirements of the new MiFID II regulations include other communications intended to result in a trade, such as mail, fax, email or audio recordings.
All recordings must be stored for a minimum of five years from the date created (in some cases up to seven years).
So they can be effectively monitored for compliance, all records must be stored safely, ensuring they cannot be altered or deleted. Organisations must ensure the quality, accuracy and completeness of all records and make them accessible and readily available to the FCA on request.
According to MiFID, any organisation involved directly in trading must record conversations, with the exception of financial advisers and brokers who do not operate across borders or hold client money.
Simply recording conversations is no longer sufficient.
Regular monitoring of recording procedures is recommended to ensure compliance with the new regulations. Organisations are also required to keep records of the investigations carried out on the effectiveness of their recording procedures, retaining these records for the same period of time as the recordings.
MF Communications is a leading business telecoms solutions provider, supplying new, remanufactured and refurbished business phones, telephone systems, parts and telecommunications services. Established in 2000, MF Communications consists of a team of business telecoms engineers and telecommunications experts with extensive industry experience and a strong reputation for providing quality products and exceptional customer service.
For help with changes to your current call recording procedures, please contact us. We can help with all your call recording needs.