MiFID II will change the laws of data collection, recording and storage from January 3rd 2018 with huge penalties should companies not comply. Whether that non-compliance is due to inability, ignorance or refusal the consequences aren’t worth it. Another note-worthy feature of MiFID II is that it will increase the amount of businesses and companies that have to comply as well. Some companies may find that they are limited by their old ISDN system as call recording can often be an expensive add on with some lines being unable to support the feature!
“Level 1” of the new MiFID legislation was approved back in 2014 which includes changes to the original MiFID from 2007 and now includes MiFIR (the Markets in Financial Instruments Regulation). 1 “Level 1” can furthered supplemented by “Level 2” legislation which comes in the form of either:
– ‘delegated acts’, drafted by the European Commission (EC) on the basis of advice by the European Securities and Markets Authority (ESMA)
– ‘technical standards’, drafted by ESMA and approved by the EC. 2
By now countries will have adapted their domestic laws and regulations to fit with the new MiFID II regulations, though very little of MiFID II applies to domestic laws as the majority of it is direct legislation. 3
So what can businesses do to prepare for MiFID II?
The best solution is to move all communications to the Cloud. By running all communications through a cloud hosted telephony system you can ensure that compliance with MiFID II is easy and ensures you and your business don’t have to pay the enormous consequences. By using a cloud hosted solution you can make sure all your calls are recorded and stored effectively to ensure your company incurs no charges.
The benefits of hosted telephony
Hosted telephony is a virtual telephone system that is hosted in the cloud and routes calls over your data lines, removing the need for on-site hardware and associated maintenance. Hosted provides all the features of a traditional telephone system but gives users the ability to work from wherever and on whatever device you choose.
- Flexibility – numbers can be ported and pointed on a line by line basis
- Scalable – pay for what you need now and add more seats as you grow
- Home and remote working solutions – stay connected wherever you are working from using the same number
- Disaster recovery – inherent business continuity in the case of an issue with access to premises
- Free calls – to mobiles and UK landline numbers
- Cost reduction – save up to 70% against a traditional telephone system
- Simple budgeting – charged as an operational cost model on a “per seat per month” basis fully inclusive of UK land line and mobile telephone calls
- Reduced total cost of ownership – little or no capital outlay and costs tightly coupled to the number of users
- One number anywhere – callers call one number that will reach you on whatever device you choose to use at that time