mifid ii fca compliance europe retell call recording

Since November 2011, under FCA regulations, relevant firms in the financial sector recording their landline calls have been required to record their mobile phone calls.

The FCA laws mean relevant financial firms that must ensure they are recording both fixed line and mobile phone calls include fund managers, hedge fund managers, inter-broker dealers, futures and options traders and stockbrokers dealing in stocks, shares, equity, bonds and derivatives.

Unless they have an investment arm (fund managers or stockbrokers), most financial advisors and insurance brokers who deal with non-investment arrangements such as motor, fire, liability and other contingent type risks are not required to record their calls, although they may well be advised to do so as a precaution.

The FCA does not issue compliance to call recording companies but provides regulated companies in the finance industry with a list of requirements. Retell can assist with:

  • Encryption – Recorded calls are automatically encrypted when you use our solutions, making them tamper-proof.
  • Archiving – Call recordings are automatically archived from Sense, however we would recommend organisations record to an external storage source for resilience. Under FCA regulations, calls must be retained for six months or more, although this will increase to five years under MiFID II so organisations are reminded to ensure they have adequate storage to permit this.
  • Accessible – The FCA also requires that calls be easily searchable by them if they visit a regulated firm’s premises – a feature of Retell call recording systems is that calls can be easily accessed via a search function.

In addition, it is important to note that under MiFID II, simply storing calls will no longer be sufficient. Organisations will be expected to regular monitor and test their recording procedure. This must also be documented in case proof that you are achieving compliancy is requested.

Further information: COBS 11.8 Recording telephone conversations and electronic communications

For further information on MiFID II and call recording, download Retell’s introductory guide to MiFID II.

If you are unsure whether your organisation needs to meet MiFID II compliance regulations, contact your legal adviser and/or the Financial Conduct Authority.

Leave a Reply

Your email address will not be published. Required fields are marked *