MiFID II and Call Recording

Following the change of call recording laws on 3rd January 2018, Retell has issue the below white paper on MiFID II and call recording. 
You can also download Retell's MiFID II whitepaper here

Who will be affected?

  • Investment firms
  • Credit institutions
  • Portfolio managers
  • Broker-dealers
  • Stock brokers
  • Corporate finance companies
  • Market operators
  • Central counterparties
  • Data service providers

Key objectives

  • Mitigate risk; to create a stable, responsible and transparent financial system
  • Provide robust levels of investor protection
  • Increase competition within EU financial markets
  • Standardise EU regulation to create a level playing field
  • Update and strengthen supervisory and enforcement powers
  • Safeguard market quality and trustworthiness
  • Introduce a new category of trading venue: the organised trading facility, or OTF
  • Introduce standardised conduct obligations to promote good governance
  • Enhance monitoring to identify breaches, disorderly trading and market abuse; this includes the mandatory recording and retention of all communications made with the intention to trade or supply a service
  • Increase transparency
  • Regulatory Equivalence for ‘Third Country’ entities operating within the EU

General points to consider

  • Call recording laws are changing 3rd January 2018 – moved from 2017
  • Expands upon MiFID - all businesses in the financial sector must record calls
  • Majority of complaints in the industry are to do with conversations where investments are sold
  • Recordings must be held for at least five years
  • Stereo recording can record each leg – outbound and inbound voice on separate channels so you differentiate between each caller
  • Must comply regardless of business size
  • Deadline won’t shift again – severe penalties for failing to comply

Actions for businesses to take

  • Check mobile phone contracts as MiFID II extends to recording mobile calls
  • Consider what solution you may need and the cost involved
  • Test regularly to make sure recording is working
  • Document testing process to show regulators you are being compliant
  • Add content to work contracts so staff are aware mobile calls will be recorded in future
  • Ensure compliance manager completes call recording training so they are familiar with how calls are stored and recalled
  • All Retell installations will benefit from up to one hour training for free