MiFID II regulations
The forthcoming MiFID II regulations that take effect on 3rd January 2018 represent the most far-reaching overhaul of regulatory legislation in the financial services sector for over a decade.
The following information is intended to help organisations to prepare for the second Markets in Financial Instruments Directive on voice and SMS communications and avoid fines, penalties and damage to their reputations.
Who will be affected by the MiFID II regulation?
Any firm that provides or advises on financial instruments and services in the EU will need to comply with the new MiFID II mobile recording regulation. This includes:
Corporate finance companies
When does MiFID II regulation come into force?
MiFiD II will be in force from January 2018. It builds on MiFID I to help strengthen investor protection, reduce the risks of a disorderly market and prevent market abuse.
Unlike its predecessor MiFID I that became law in 2007 and recommended best EU practice, MiFID II is a regulation, which makes it mandatory for financial institutions to adhere to MIFID II mobile recording requirements.
MiFID II is 196 pages long. The European Securities and Markets Authority (ESMA) has translated this into 406 pages of technical standards – seven of which relate to mobile recording.
What are the MIFID II mobile recording requirements?
- Record telephone calls, mobile calls, SMS and electronic communications.
- Keep records for five years (seven years if requested by an NCA).
- Tell clients you are recording their calls and give them the recordings if they ask.
This includes: All communications where you intend to instigate a trade or provide a service. Portfolio managers in all likelihood as there are no exemptions or exceptions.
Will UK businesses have to comply with MIFID II after Brexit?
Even though the UK has voted to leave the EU, MiFID II regulation applies because:
- The deadline is 3rd January 2018 – the UK will still be in the EU on 3rd January 2018, so must meet EU laws and regulations.
- Third-party equivalent applies – if you trade with or provide services to European companies, you must adhere to EU regulations, including MiFiD II.
- The FCA says you must – it states the UK is committed to the January 2018 implementation date and all firms must meet their obligations under UK law, including those derived from EU law.
How do I find out more about MIFID II?
Talk to Worksmart
We have been providing mobile call recording services to the financial services sector for over 4 years and partnering with RedBox recorders we offer resilient, compliant and secure mobile call recording as part of our cloud telephony services.
Parallel recording and failover options provide the protection needed to keep businesses operational and compliant.
We provide storage solutions that are fully compliant with all principal global guidelines to meet your retention policies. Our innovative managed service solutions also provide daily checks on the status and performance of your high-quality recording platform ensuring full compliance.
Fully networked archiving facilities, including third party Storage Service Provider integrations, combined with flexible access and replay control provide peace-of-mind security.
Forthcoming Webinar on MIFI II Compliance
We will be announcing some dates shortly for a webinar on the MIFID II requirements and solutions available from Worksmart. To register your interest in one of these events or discuss how your organisation can gain compliance please send us your details.