MIFID II in Finance & Insurance Industries-Requires 5 years minimum storage of recorded calls for FCA compliance.
MIFID I was introduced by the FSA in 2007 to regulate those dealing with the sale of stocks, shares & derivatives on the phone to create a stable and transparent industry after several fraud cases.
MIFID II extends to all firms including IFA’s (who may just be giving out advice) to record all “electronic communications” (including landline/mobile phone calls, SMS, and chat) that relate to the reception, transmission and execution of orders, irrespective of whether those communications result in a trade or not and to retain those recordings for a minimum period of five years’. There may be allowances made for IFA’s to take written notes of all transactions but these must be very comprehensive & kept for 5 years therefore advisable 7 cost-effective to record the calls.
Additional Info: The insurance Ombudsman has for many years said that regardless of the type of business if there is a complaint by a member of the public about any Insurance activity on the phone, that he will ‘err on the side of the customer if the company can’t prove what was said’ therefore call recording is an ideal way of protecting against complaints.
If you have a call recorder does it comply with the compliance requirements of the FCA ?
NB Data recommends that customers familiarise themselves with the requirements of the FCA (Financial Conduct Authority) with regard to MIFID II which further extends MIFID to IFA’s and others in the finance industry.
NB Data recommends the Vidicode UK Apresa Call recording system which offers financial businesses the following benefits:
- Encryption ensures calls are tamper proof and can't be edited
- Checksum fingerprint matching confirms if original call is altered/edited
- Audit trail logs user access and actions and provides proof for internal or regulatory body investigations
- Hard disc storage of calls or storage to NAS drives or storage of customer’s own choice
- User access authentication restricts access to users to designated functions
- Known storage location and backups keep calls for as long as is needed without ongoing costs
- Email alerts inform administrators of faults or no call activity
There may also be other Vidicode UK options available that offer the listed features so please contact our call recording specialists on 0161 767 2540 for further information.
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