From large high street banks to insurance brokers, MiFID II means the necessity for call recording for financial services has never been greater.
In the UK, the FCA (Financial Conduct Authority) regulates the financial services industry. They have four main objectives under the Financial Services and Markets Act 2000: maintaining market confidence; securing the appropriate degree of protection for consumers; fighting financial crime; and contributing to the protection and enhancement of the stability of the UK financial system. So where does call recording for financial organisations come into this?
The FCA has set rules requiring firms to record telephone conversations and other electronic communications to help deter and detect market abuse in the UK. Initially aimed at the finance industry, these rules stretched into the mortgage industry in early 2011. FCA rules are in accordance with MiFID (Markets in Financial Instruments Directive).
Since March 2009, relevant firms in the financial sector have been expected to record all telephone conversations and electronic communications relating to client orders and the conclusion of transactions in the equity, bond, and derivatives markets. With the introduction of COBS 11.8, this was extended to mobile phone calls in 2011, which stated organisations should take measures to avoid staff making relevant calls that they were incapable of recording.
With MiFID II taking effect on 3rd January 2018, organisations must ensure that they can comply with the much stricter regulations that are on the horizon. The FCA is keen to clamp down on market abuse and create a transparent financial system, and therefore any organisations that come under their scrutiny are likely to receive a huge penalty for non-compliance. Is your current call recording solution compliant with MiFID II?
For further information on MiFID II and call recording, here’s a handy introductory guide to MiFID II.
Require answers to some more specific questions? Contact us for a free demo of our call recording solutions.
If you are unsure whether your organisation needs to meet MiFID II compliance regulations, contact your legal adviser and/or the Financial Conduct Authority.