If your company hasn’t yet got to grips with the Markets in Financial Instruments Directive (MiFID) II – the time is now. These are the new set of regulatory standards drawn up by the European Union in response to the 2008 financial crisis. They come into force on January 3rd, 2018.
While the legislation is wide ranging, there’s one simple and practical step your business can take to prepare – upgrading your phone systems. That’s because one of the major changes introduced by the Markets in Financial Instruments Directive (MiFID II) is the need to record and store phone calls.
Here’s a practical guide to getting your business phone system ready for MiFID II:
Step 1: Does it apply to your business?
The new compliance rules set out by MiFID II cover any business which provides services linked to ‘financial instruments’. This includes any company that provides advice or guidance that’s ‘intended to lead to a transaction’.
So that covers a wide range of different financial services – from credit institutions to investment firms. It also means that many companies who are exempt from current regulations will find themselves having to meet these new MiFID II requirements.
Step 2: Understand the requirements
Companies must record any call which relates to a potential financial transaction – whether it does or not. These need to be securely archived and stored in a format which allows them to be easily accessible. They need to be stored for a minimum period of five years.
Organisations must also be able to prove that they have a communications system that allows them to monitor calls and an active policy to ensure that proper call recording, call tracking and storage processes remain effective over time.
Step 3: Future-proof your system
If your current communication setup isn’t capable of handling these MiFID II requirements then you need to get one that is. With the deadline looming, it can seem a daunting task but it’s something that can be achieved with minimal cost, hassle or disruption.
By switching to a cloud-based set-up, calls can be easily managed, monitored, recorded and digitally stored.