Meeting compliance for Finance and the impact of MiFID II
New finance regulations, designed to protect consumers as well as reduce risk of money laundering and fraud, are being introduced across Europe by January 2018.
Called MifID II (Markets in Financial Instruments Directive version II), it is a directive that enhances existing regulation and was kicked off by the financial crisis in 2008.
One of the key changes is the increased requirement for recording transactions between people and organisations. Like MiFID I, MiFID II obligates firms to keep records of transactions. However, MiFID II will require firms to retain additional information on these transactions.
MiFID I allowed member states discretion as to whether they required firms to record telephone calls and electronic communications that resulted or might result in transactions. The obligation to record mobiles in all sizes of organisations has been in place since Nov 2011.
Under MiFID II, it will become mandatory for firms to record telephone calls and electronic communications. Recording and the ability to review recordings will also be extended. MiFID II will also affect any business that is involved in giving financial advice over any form of electronic medium or channel including: voice, SMS, email, instant messaging etc., and will include companies as small as independent financial advisors.
The directive specifies that: "Records shall include the recording of telephone conversations or electronic communications relating to, at least, transactions concluded when dealing on own account and the provision of client order services that relate to the reception, transmission and execution of client orders.
Such telephone conversations and electronic communications shall also include those that are intended to result in transactions concluded when dealing on own account or in the provision of client order services that relate to the reception, transmission and execution of client orders, even if those conversations or communications do not result in the conclusion of such transactions or in the provision of client order services.
For those purposes, an investment firm shall take all reasonable steps to record relevant telephone conversations and electronic communications, made with, sent from or received by equipment provided by the investment firm to an employee or contractor or the use of which by an employee or contractor has been accepted or permitted by the investment firm."
The good news is that Vodafone Mobile Network Recording service, being used by many financial institutions today, already delivers a platform for financial institutions to meet their MiFiD II compliance requirement.
Find out more about Vodafone Network Mobile Recording here: http://www.vodafone.com/business/global-enterprise/enterprise-managed-mobility/network-mobile-recording
An excellent whitepaper by one of Vodafone's Contact Centre technology providers is here: http://www.nice.com/websites/holisticsurveillance/regulations/mifid-ii/MiFID%20II%20Capital%20Markets%20Reform%20with%20Communications%20-%20Whitepaper.pdf
The MiFID II regulations can be found here: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02014L0065-20160701