How To Comply With MiFID Phone Recording Requirements

 

If you are a business person, you need to make sure that you comply with MiFID phone recording requirements. The coronavirus pandemic brought multiple challenges to financial institutions, especially regarding compliance to MiFID II requirements. Credit institutions and investment firms are supposed to record all telephone conversations that are connected with the investment services and activities’ performance, except the operations of Multilateral Trading Facilities and Organised Trading Facilities.

In the early stages of the pandemic when there were lockdowns, people had to opt for work from home setups which made it challenging to comply with MiFID II’s regulatory requirements. As a company owner, it is imperative that you take reasonable steps to record voice calls and prevent your employees from making, sending, receiving phone calls on a privately-owned device that the firm cannot record.

Due to the circumstances brought by the pandemic, the European Securities and Markets Authority, recognizes that recording relevant telephone conversations may not be practicable for firms. Even though capturing phone calls may not be attainable, ESMA still expects firms to take alternative steps to record calls.

You need to know the steps to take to comply with MiFID call recording requirements. During the pandemic, financial institutions faced problems with setting up a new working environment for their employees. There were so many issues that were experienced ith remote working, some of them being slow trading speeds and balancing the firms’ regulatory obligations with the traders’ right to privacy.

Monitoring market abuse became more challenging because the traders are now free from the physical supervision and monitoring on a trading floor. Also, the families of the traders could hear the phone calls or see the screens containing market-sensitive information. While confidentiality is always very important in financial institutions, traders may not be able to keep their activities secure, mostly when they use their personal electronic devices. This issues needs to be addressed to ensure the firms can monitor employee communications and comply with MiFID call recording requirements.

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