Want to know if the MiFID II regulation affects your business? MiFID II is legislation impacting the financial services industry with an attempt to increase transparency and reduce harmful financial practices. Let’s look at the communication regulations under MiFID II.
MiFID II Definition
The Market in Financial Instruments Directive II (MiFID II) is a European Union legislation that came into force in 2018. This legislation builds on MiFID I and focuses on preventing breaches and abusive trading or financial services. It regulates firms offering financial services to customers like interdealer brokers, investment managers, venture capitalists, stockbrokers, Independent Financial Advisors (IFA), etc. And similar to the Dodd-Frank Act, a major part of this legislation is the requirement for financial institutions to conduct mobile and voice recording.
Regulations Regarding Call Recording
MiFID II dictates that certain telephone conversations and electronic communications must be recorded by firms. According to the MiFID II policy statement from Financial Conduct Authority (FCA), firms must record correspondences that “result in 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.” In addition to this, certain correspondences relating to firms offering corporate finance services may fall within recording requirements. Other types of communication that might fall under the MiFID II requirements include those between:
- A bank and selling shareholder or bank and buyers relating to the purchase of a block of securities by the bank and the resale of securities.
- A bank and its corporate client and bank and sellers related to the purchase of securities in “buy-back” transactions.
- A bank and buyers regarding re-selling shares purchased by an underwriting bank.
- A bank and its clients and the bank and a third-party seller or broker regarding the purchase of securities as part of stakebuilding.
Call Recording Compliance
If you are a financial services company, it is highly recommended to comply with the regulations and requirements of MiFID II. However, traditional recording technology, as well as recording and storing all calls, can be expensive.
Fortunately, cloud-based solutions make call recording and storing processes easier. For many companies, MiFID II provides a good reason to switch to a cloud-based communication platform. One of the benefits of a virtual communication system is the ability to record calls and access them for future use. Additionally, having the ability to record communication over different channels and devices is exceptionally convenient.
With a virtual telecom services provider like United World Telecom, you can choose to record 100% of your calls. These calls are stored as MP3 files for later use. Additionally, you can get the feature with your virtual business number and so, you don’t need to purchase any additional equipment to record calls.
Other Uses for Call Recording
Call recording is often used to reduce business and personal liability and to record important transactions and maintain compliance. Besides recording your calls to comply with MiFID II, you can also use recordings to improve business-customer interactions. For example, you can review recorded calls for quality assurance by referring to them during training and performance analysis. Teach and train your employees to meet your company’s standards. Reward good customer service practices and highlight interactions that need improvements. Some advantages of call recording:
- Improve staff performance
- Receive customer feedback
- Monitor marketing campaigns and ROI
- Find and recover missed opportunities
- Gather sales training material and more.
Record Calls with United World Telecom
United World Telecom’s Call Recording feature will provide you a safe space to record and store both incoming and outgoing calls. Record calls and store MP3 files that are easily accessible. Sign up for a business number or transfer your existing number to us and get this feature today.