The Markets in Financial Instruments Directive 2014/65/EU (known as ‘MiFID II’) is a pan-European regulation that provides stronger investor protection and transparency for clients. MiFID II built on the previous MiFID regulation and has had an even more pronounced impact on the financial landscape. MiFID II rules came into effect on 3 January 2017.
It introduced new requirements, including the recording and storage of all calls that are intended to result in a financial transaction. Anyone making a call in which they recommend products or aim to make a ‘transaction’, will have to record that call and store the recording for five years [ref. Article 16(7)]. Failure to comply can lead to significant penalties.
This pan-European requirement to retain recorded calls, both mobile and fixed, is a significant expansion of current European policies. As a result, financial organisations must implement solutions that can record and store fixed and mobile calls, regardless of who owns the device.
MiFID II also contains a clear requirement for management to have effective control over policies relating to call recording. In addition, firms must monitor the recorded calls in order to ensure compliance with the regulatory requirements. This monitoring is specified as risk-based and proportional, so firms must implement monitoring programs to listen to recorded calls.
Organisations are also required to put systems in place provide alerts when calls are not recorded or retained, and investigate why that happened. The results of such investigations must also be kept for five years.
If an organisation makes 10 mobile calls, then it is its responsibility to record and retain all 10 calls. If it does not, it is also the organisation’s responsibility to understand why not. This end-to-end consistency has become the new standard in compliance recording.
Touch has been helping companies to meet existing MiFID call recording requirements since 2010. For example, in Norway, previous legislation had required the recording of mobile and fixed calls that could lead to a transaction. It means that Touch has years of experience of working with the region’s leading organisations to meet MiFID and ‘MiFID II-like’ requirements.
Similarly, in the UK, the Conduct of Business Sourcebook requires the recording of all calls regarding client orders and transactions. Again, Touch has the experience and heritage of working with customers to meet such obligations and to ensure compliance with MiFID call recording requirements, simply and easily.
It’s a complete solution that ensures you meet all relevant regulations and MiFID call recording obligations.