Complying with MiFID II, all you need to know about call recording requirements


Recently the EU announced MiFid II (Markets in Financial Instruments Directive), the legislation that regulates firms who provide services to clients linked to ‘financial instruments’ (shares, bonds, units in collective investment schemes and derivatives), and the venues where those instruments are traded. MiFID II will take a full effect from 3 January 2018 and includes a revised MiFID and a new Markets in Financial Instruments Regulation (MiFIR).

While preparing for MiFID II, taking a full effect from January 3rd 2018, financial firms need to address several areas of the legislation. One part of MiFid II regulated recording of calls in securities trading. The legislation requires comprehensive and evidence-proof recording and archiving of calls that may result in transactions regardless of the channel: phone, video call, chat or e-mail. (Note: MiaRec do not offer legal advice, please consult your legal counsel for guidance on the compliance activities that are appropriate for your organization)

MIFID requirements:

  1. Document: Record all calls which will/may result in transactions.

  2. Notify: Notify the customer that the conversation is being recorded.

  3. Store: Store all communications for a minimum of 5 years.

  4. Retrieve upon request: Reproduce quickly and easily all communications leading up to a specific transaction or in a given time period.

MiaRec solution:

MiaRec provides evidence–proof recording of calls and customer communications to help comply with MiFID II in terms of call recording requirements. Providing rock-solid security and high-availability architecture MiaRec ensures all communications are recorded without interruption and securely stored in encrypted format. Unique data replication functionality helps manage storage and administration costs and centrally store call recording data from multiple locations. Call recordings can be configured to be stored for 5 years and can be easily retrieved upon request via a user-friendly MiaRec web-interface.

Benefits of MiaRec Call Recording:

Secure Call Recording and Encryption – MiaRec records and securely stores interactions in encrypted format.

Unique Call Recording Announcement functionality - MiaRec solutions offer a built-in recording notification to help you stay compliant with legal requirements and avoid litigation (available for both inbound and outbound call scenarios). MiaRec plays a recording announcement at the beginning of conversation to notify the customers, that the call may be recorded.

Flexible Retention policy -Administrator can easily configure retention period for call recordings. Different retention periods can be selected for different types of calls to keep storage costs down.

Unique Data Replication functionality - MiaRec supports advanced replication mechanism between two and more MiaRec servers. Data may be replicated from multiple locations to the central storage to manage administration and storage costs.

Fine-grained privileged access - Access to data is password-protected and provided to authorized users only. Role-based access control allows to define user’s rights, such as playback, live monitoring, administration, resources access etc.

High-Availability architecture - MiaRec implements a redundant, high availability architecture to guarantee the recording is always on, thus your business is remaining compliant even in the event of hardware failure.

More security features for evidence-proof call recording:

Audit Log - MiaRec’s activity tracking system enables full audit logs of all actions performed within the system, such as access to call recording, deletions of files, change of configuration etc.

File Watermarking - MiaRec offers a powerful application to validate the authenticity of any recording file, ensuring that call recordings remain intact and unaltered.

To find out how MiaRec can help your firm be compliant with MiFID II, please contact a MiaRec representative.