Two weeks have now passed since the January 3rd deadline, however many organisations across the globe are still putting policies in place to ensure compliance with the new landmark regulations.
It is crucial that financial services institutions are paying close attention to how MiFID II will affect the day to day running of their business and what they are doing to ensure that the rollout of a communications recording solution is not only a simple process but also reliable.
The expectation is for firms to have made all reasonable efforts to meet compliance regulations including communications capture.
Recent research from Red Box Recorders looked specifically at communication recording and found that 43% admitted they were not fully aware of the requirements around capturing client communications, including how long they should be retained for. Furthermore, 1 in 13 (8%) currently have no systems in place to record and capture their communications.
What This Actually Means For Compliance Recording & Capture
Recording:
- Investment firms must arrange for records to be kept of all services, activities and transactions undertaken including recordings of telephone or electronic communications. Such telephone conversations and electronic communications shall also include those that are intended to result in transactions
Storage:
- The records kept must be provided to the client involved upon request and shall be kept in a durable medium for a period of five years and, where requested by the competent authority, for a period of up to seven years
Retrieval:
- The records shall be retained in such form allowing reconstruction of each key stage of the transaction. It must be ensured that records can’t be manipulated or altered. Organisations must also ensure data allows IT or any other efficient exploitation when the analysis of the data cannot be easily carried out due to the volume and the nature of the data
Monitoring:
- The monitoring of records of relevant telephone conversations and electronic communications is necessary to assist the firm in ensuring that it is meeting the recording requirements and also adhering to its wider regulatory obligations under MiFID II including the deterrence and detection of market abuse
Reviewing:
- The monitoring should be conducted regularly and when necessary on an ad-hoc basis. Due regard should also be given to any emerging risks
What We Can Do
Recording:
- Capture everything: back office, front office and mobile communications – audio calls, video calls, IM, SMS and PC screens, across phones, cells, turrets and PCs
Storage:
- Manage your retention policy and have simple and easy control over your storage infrastructure, including flexible local and networked storage options.
Retrieval:
- Easily find records and reconstruct trades and control of who can replay recorded communications with a secure and traceable way for managers to approve and decline replay requests from users
Monitoring:
- Monitor your entire set up of servers/telephony systems which can be provided as a management tool for your IT team or delivered as a fully managed service from Red Box Recorders
Reviewing:
- Enable detailed and comprehensive analysis of calls to spot trends and potential risks using our transcription service. Allow scheduled and ad-hoc quality spot checks with forms that can be built in line with your requirements and based on specific templates
Whatever your requirements, now is the time to get in touch to find out more and ensure you are compliant. For any enquiries call +44 (0)115 93 77 100 or email enquiries@redboxrecorders.com.
