Are you and your telephone system ready for MiFID II?

Are you and your telephone system ready for MiFID II?

Many businesses in the financial industry will need to start recording and storing phone calls, both landline and mobile, where the call relates to "the reception, transmission and execution of orders, or dealing on own account".

The revised Markets in Financial Instruments Directive, or MiFID II, is due to come into force in early January 2018. First introduced by the EU in response to the 2008 financial crisis, MiFID was strong reform for the financial industry designed to prevent history from repeating itself.

MiFID II has been worked on to replace the existing directive, and as with all changes and updates in legislation and guidelines, is written with new technologies and new ways of conducting business in mind. It is realised that a lot of decision making conversations are no longer made in minuted meetings, and that more and more business is concluded during phone calls and in emails, so the new MiFID II brings tightened rules around the recording and storing of conversation and will apply to:

• interdealer brokers
• firms engaging in algorithmic and high-frequency trading
• trading venues including regulated markets, multilateral trading facilities, and prospective organised trading facilities
• prospective data reporting service providers
• investment managers
• stockbrokers
• investment advisers
• corporate finance firms and venture capital firms
• financial advisors

The full policy document can be viewed here.

Despite some trade bodies fighting against the plans, the FCA remains committed to recording being needed.

And there is no room for error when it comes to the legality of recording calls. Failure to comply with the requirements that govern recording a phone call with a colleague or customer could result in substantial costs and significant reputational damage.

As much as this is a news and information article, we also want to take this opportunity to let you know that we have a solution for you should you need it! We can provide your business with a cloud based fixed line service, which also links to your mobiles, and includes a call recording system designed to meet the standards of the Financial Conduct Authority (FCA).

The Horizon telephone system creates a digital signature of each call as the recording is completed and stored securely. You can later request this signature and test your copy of the call against it to prove it has not been tampered with since it was recorded. This feature also applies to Voicemail recordings.

With your Horizon fixed line service through Cellular Solutions, you will have a great system in place to help your business comply with the new MiFID II changes and also help with your GDPR compliance ready for May 2018. Recordings will be stored in the only VISA Europe approved solution currently available.

For more information on this product click here – or call us now on 01273 424220.

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