On the 3rd January 2018, MiFID II legislation took effect, impacting the way organisations in the finance sector record communication and retain data.
MiFID II is the second casting of MiFID (Markets in Financial Instruments Directive), following the initial deadline in 2007. The legislation has a huge scope but if you’re looking to start on the basics, this article will provide you with an introduction to MiFID II.
Who does MiFID II apply to?
Investment firms, credit institutions, portfolio managers, broker-dealers, stock brokers, corporate finance companies, market operators, central counterparties and data service providers.
What conversations do you need to record?
The Financial Conduct Authority 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.”
What forms of communication do you need to record?
Under MiFID II, all forms of communication must be recorded – email, SMS, instant messaging chat, VoIP, telephone and mobile. It is also a requirement that face-to-face meetings are recorded and although it does not have to be done via an audio recording device, written notes will be subjected to the same level of scrutiny as electronic and telephone communication. Therefore, businesses may find it more efficient to record such interaction using a dictaphone, for example.
For further information on MiFID II and call recording, Download Retell’s Introduction 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.