Are you ready for the MiFID ll call recording deadline?
Are you ready for the MiFID II call recording deadline?
When MiFID II officially becomes regulation on 3rd January 2018, many financial organisations will be forced into recording calls. MiFID II (The Markets in Financial Instruments Directive) is a piece of EU legislation that regulates firms who provide financial services to clients such as Independent Financial Advisors (IFA), stockbrokers, venture capital firms and many others.
Recording all communications
MiFID II requires companies to capture, record and store all communications that intend to lead to a transaction, whether they result in a trade or not. By ‘all communications’ it means any conversation related to the deal and that includes all relevant telephone conversations, face to face meetings and electronic communications. These records will need to be kept for at least five years, sometimes seven years or for the duration of the relationship with the client.
Firms must be able to:
- Record telephone calls, mobile calls, SMS and electronic communications
- Keep records for five years
- Advise clients you are recording their calls and provide them the recordings on request
With calls being made from personal or business mobile phones or from an office desk phone, MiFID ll will have a significant impact on both fixed line and mobile call recording systems that businesses currently use.
When assessing the options for call recording, business should consider a number of key factors:
Storage: the system will need substantial storage capacity which is often a cloud-based solution given that MiFID II requires all recorded conversations to be stored for 5 years.
Security: Cloud will also provide the solution of how to store large amounts of recorded data containing delicate personal details safely.
Scalability: the ability for the call recording system and associated storage capability to grow and expand over time.
Home workers: Employees working from home or remotely will need to ensure their calls are still recorded on their personal mobiles or VoIP lines.
Retrieving data: the option to search for and to find calls is required in order to identify and locate a certain part of a specific telephone call.
Implementation: Conventional call recording solutions are server-based and require hardware installation, licences and in-house expertise to manage and maintain the system. Cloud solutions are usually pay per user per month, not on premise and are looked after by experts.
Cost: The need to store all recorded conversations by all employees for a period of five years will require a system that is cost effective.
The benefits of cloud
Given the amount of recorded data that companies will need to store and protect, the most obvious solution is to use a cloud-based recording solution. Using the cloud provides access to call recordings and archives from anywhere, at any time via secure online portals.
A cloud-based voice recording solution encrypts data in transit and then organises, indexes and stores it in an impenetrable online vault. In addition cloud systems do not require any significant on-site installation, minimising cost and disruption incurred as a result.
For organisations that need to be MiFID II compliant, STL Communications offers a range of call recording systems for businesses including hosted solutions that have call recording included as standard. With the MiFID II deadline of 3 January 2018 fast approaching, you should give us a call soon to find out more on 01993 777120 or email email@example.com