Rush on MiFID ll action before 3 January deadline
With the possibility of facing a fine of up to 5 million euros or 10% of annual turnover, IFAs are scrambling to comply with the new MiFID ll regulations before the MiFID deadline on 3rd January 2018.
One of the main requirements is that advisers have to record all telephone calls under the new MiFID ll rules or at least provide an “analogous” written note of them. MiFID II requires firms to record telephone conversations and electronic communications that relate to “the reception, transmission and execution of orders, or dealing on own account”.
What does MiFID II require?
The information required as a minimum under the new EU rules is as follows:
– Date and time of the meeting
– Location of the meeting
– Identity of the attendees
– Initiator of the meeting
– Relevant information about the client order including the price, volume, type of order and when it shall be transmitted or executed
The Financial Conduct Authority (FCA) suggests that in order to comply, firms should “capture all the main points of the full conversation that are relevant to the order” which when discussed over the telephone means call recording. The challenge for most IFA firms is to regulate the recording of calls from a number of devices, landlines, work mobiles and often, personal mobile phones.
The call recording solution used needs to:
– Store calls for five to seven years
– Record both internal and external calls (including extension-to-extension)
– Provide secure storage ie encrypted
– Audit trail
– Start/stop/pause recording
– Access to and amendments to records
– Search to find calls
– Stored in a durable medium
– Readily accessible and available to clients
– Ensure the quality – BS10008
– Fixed and mobile
Call recording options
Call recording solutions enable easy recording, storage and play back of calls, often with a high level of encryption. STL’s call recording solutions work with all phone systems including ISDN and SIP and we can also provide hosted web-based VoIP fully compliant call recording solutions.
STL’s call recording solutions
Standard: A strong basic call recording facility that provides record, store, playback, search and audit facilities
Premium: Added value product with an increased set of features including longer retention, adjustable playback speed, GUI (Graphical User Interface) functions, comments and tagging
MiFID II: Full suite of call recording features and regulatory adherence
There are no set up costs for any of these, although any bespoke integration or special requirements may involve additional professional services.
With only weeks to go before MiFID ll compliance is required for IFA’s, contact STL if you need help determining which call recording solution is best for you. The STL MiFID ll help team is contactable on 01993 777120 or firstname.lastname@example.org