Changes have been made to legislation with a significant focus on conversation recording.
The Markets in Financial Instruments Directive (MiFID) has stemmed from the EU. It will remain in effect and enforced by FCA.
MiFID covers a vast amount of legislation relating to the financial industry but the most recent changes (MiFID II) relates to call recording.
* Record all external conversations relating to a financial transaction, even if the transaction was not completed
* Store the records for 5 years and ensure that the system does not fail which means regularly testing it, and you will need to record your testing process, too.
* Ensure that the system does not fail which means regularly testing it
* Record your testing process.
Not all of the financial industry is required to comply
The main institutions will be Banks, Stockbrokers, Investment Managers, Corporate finance firms, Insurance Brokers and Independent Financial Advisors.
It's to keep the financial industry ‘honest’, it’s always the naughty few that give the industry a bad name, resulting in the need for businesses to prove their innocence.
The FCA concluded in their consultation paper that “... We think taping conversations between firms and their clients are likely to be an effective way of advancing our consumer protection objective”.
The legislation doesn’t just apply to recording your phone lines....
It applies to mobiles, SMS, Email, Instant Messaging and face-to-face interactions. This means that all of those interactions need to be recorded and the conversations stored securely for 5 years.
The solution to this lies particularly in your phone system...
Hosted Telephony is a great way to record conversations and store them securely. You can also, extend that to business mobiles.
If you need an all-in-one solution, we do have a great MITEL system which is great for recording all aspects required by this legislation.
It’s already in place as it came in effect from 3 January 2018, so if you are reading this story, it’s imperative that you take action now!
Need choosing a phone system to comply with these laws?
Get in touch!