Think recording calls under MiFID II seems inconvenient? Let us explain how it can hugely benefit your business.
We don’t want to make you panic but MiFID II is just two months away. Yes, that’s just two months to get your organisation fully compliant. Despite the FCA‘s efforts to raise awareness of the forthcoming deadline, the implementation of the second casting of the Markets in Financial Instruments Directive on the 3rd January 2018 is closing in on us.
Regarding telephone calls, the FCA state: “Firms are required to record conversations that result in a transaction being undertaken or that are intended to result in a transaction being undertaken.” The necessity to tape calls depends on which kind of financial service your organisation offers*. While having a digital, taped recording of a call is not obligatory for all, it is important to consider the benefits of using this method in comparison to simply taking notes.
We appreciate that saving money is likely to be high up on any organisation’s list of priorities and it may seem easier and cheaper to opt not to invest in a call recording solution. However, have you considered the drawbacks to taking such an approach? We’ve put together a list of five reasons why note-taking is not an appropriate way to comply with MiFID II and how call recording can combat these.
- You may need to pause to take notes. By recording calls automatically, your telephone meetings and conference calls can run more efficiently. You can work while our system runs in the background.
- Human error is likely. Who is going to take notes? What happens if they fail to note a key piece of information? Call recording does not rely on an employee, and with Retell, you’ll benefit from stereo recording so both callers are recorded separately. You can reduce the volume or mute one side to gain clarification on what someone is saying at a particular moment in the call.
- Can easily be disputed. Everyone knows disputes are expensive. By taping your calls, you have proof of ‘who said what’ at your fingertips, should there be any confusion over what was discussed over the phone.
- Requires physical space for filing and/or to be typed up after meeting. Will you require a new employee to take the notes and type them up? Have you got the storage space for further filing? This headache is avoided if your call recordings are stored straight into a database.
- May not be considered thorough by regulators. Notes can easily be misplaced or lost. With Sense, calls are readily available and easily searchable by a variety of criteria when regulators ask to see how you’re achieving compliance.
MiFID II is designed to increase transparency surrounding trade in the European financial markets and call recording is the best way to keep on the right side of the FCA, who will be actively seeking out those who are failing to comply. Implementing a call recording solution will ultimately guarantee a return on your investment, saving you time and money. It will also ensure you don’t end up with a hefty fine or tarnished reputation.
You can also download the Retell Introductory guide to MiFID II if you require further information on the regulations.
*Please contact the FCA for clarification