The Markets in Financial Instruments Directive II (MiFID II) changed business call recording requirements.
MiFID was first applied in the UK from November 2007, but this has been revised to improve the functioning of financial markets and strengthen investor protection.
The changes took effect from 3rd January 2018.
Organisations affected by MiFID II include:
interdealer brokers, stockbrokers, financial advisers, corporate finance firms and venture capital firms, trading venues including regulated markets (RMs), recognised investment exchanges (RIEs), multilateral trading facilities (MTFs), and prospective organised trading facilities (OTFs), prospective data reporting service providers (DRSPs), banks, investment managers, including individual and collective portfolio managers, tied agents and appointed representatives, trustee firms, firms trading commodity derivatives including energy and oil market participants, firms conducting corporate finance business or stock-lending activities, occupational pension scheme (OPS) firms, firms conducting Lloyd’s market activities, depositaries, investment companies with variable capital (ICVCs), service companies, authorised professional firms (APFs).
You can read the Financial Conduct Authority (FCA) Markets in Financial Instruments Directive II Implementation – Policy Statement here.
Call recording under MiFID II
One element of MiFID II covers recording. The legislation requires comprehensive and evidence-proof recording and archiving of calls that may result in transactions regardless of the channel: phone, video call, chat or e-mail.
MiFID II requirements:
- Document: Record all calls which will/may result in transactions
- Notify: Notify the customer that the conversation is being recorded
- Store: Store all communications for a minimum of five years
- Retrieve upon request: Reproduce quickly and easily all communications leading up to a specific transaction or in a given time period.
Are you complying with the MiFID II call recording rules?
Under MiFID II, UK financial services companies must implement significant changes to stay compliant and meet the rules for recording and storing business calls and conversations.
What are the rules?
From 3rd January 2018, under the MiFID II call recording rules, all conversations that are intended to lead to a transaction or trade, even if they ultimately don’t, must be recorded. These rules apply equally to firms dealing with their own account as well as providing services for external clients.
Do the rules apply to your business?
Under current rules, only individuals directly involved in trading, such as banks, stockbrokers, investment managers and financial and commodity derivatives firms need to record their conversations. But MiFID II widens the requirement.
iCS call recording solutions
There is a range of excellent, cost effective, fully functional call recording systems available for businesses of all shapes and sizes.
iCS offers an array of call recording options that are easy to implement. We will manage the process for you.
We can add call recording to your existing phone system or alternatively we can review whether now is a good time to switch to a hosted system that comes complete with call recording included.
Talk to iCS – give us a call on 0800 9 77 88 99 or email us.