The Markets in Financial Instruments Directive (MiFID) was first implemented in 2007 to enable firms to operate throughout European Union (EU) and encourage competition. It also introduced investor protection measures to deter poor practice and boost client confidence. Since 2009, firms have been required to record telephone conversations and keep copies of electronic communication. In 2011, this requirement was extended to include mobile devices.
What is MiFID II?
MiFID II came into effect on the 3rd January 2018, the scope has been extended and demands that all communication associated with a financial transaction is recorded and stored for at least 5 years.
These changes affect dealing, broking, asset management and financial advisory services provided by banks and other service providers.
Firms affected by MiFID must record receipt of client orders, transmission of orders and the conclusion of a transaction, both when executing orders on behalf of clients and on conclusion of a transaction when dealing own accounts. Any modifications or cancellations should also be recorded.
How Direct Voice & Data can help?
Direct Voice & Data tailor their call recording system to EXACTLY meet your business objectives, speak to our team today to see how it can improve your communications strategy.
Summary of recording requirements are:
- New and existing clients must be notified that telephone conversations are recorded
- Records must be made available to the client on request for a period of five years, and by the authority for a period of up to seven years
- All reasonable steps must be taken to prevent an employee or contractor from sending or receiving relevant conversations and electronic communication on privately owned devices.
- Orders placed through other channels must be made in a durable medium such as mail, fax or email. Face-to-face conversation with a client must be recorded by taking minutes or notes.
- Records should be stored in a durable medium that does not allow the original record to be changed, deleted or copied. The retention period begins on the date that the record was created.
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