Any organisation involved in supplying ‘financial instruments’, such as shares, bonds, derivatives and investment schemes, is regulated by the EU Markets in Financial Instruments Directive, which requires the recording and storage of all communications intended to lead to a transaction. MiFID II extends this to those giving advice that may lead to a trade or investment.
MiFID II aims to strengthen investor protection, prevent market abuse, increase transparency and renew consumer trust.
Brexit is unlikely to affect the MiFID requirements in the UK, as the Financial Conduct Authority (FCA) views the directive as good regulatory practice.
The changes are currently set to take effect from 3 January 2018.
Compliance, security, customer protection.
MiFID II requires that call recordings be stored securely for 5 years. X-on call recording provides secure encrypted storage of all calls, inbound and outbound, fixed and mobile, with easy access by authorised administrators when required.
Where smaller financial firms and advisors are waived from complying with MiFID II call recording requirements, the advice is still to record calls in case manual call logs of all transactions prove inadequate.
Where there is an existing call recording solution within an organisation, a review should be carried out to assess whether there is adequate storage and archiving capabilities to meet the 5 year storage requirements, and that the search facility will comply with both MiFID II and GDPR regulations.
Security Compliance Standards
X-on maintains accreditations with ISO 9001 (Quality Management of Systems requirements), ISO 27001 (information security standards), ICO (data protection act compliance), DSP Toolkit (NHS data security standards), and are a Crown Commercial Service NHS Framework Supplier.
MiFID II affects a range of firms that provide or advise on financial instruments or services. The types of business needing to comply includes:
- Stock Brokers
- Broker Dealers
- Finance Companies
- Credit Institutions
- Investment Firms
- Financial Advisors
- Portfolio Managers
- Corporate Finance Companies
- Regulated Market Operators
- Central Counterparty Clearing Houses
For further information on MiFID II compliance please call Sales on 0333 332 0000.