The Markets in Financial Instruments Directive (MiFID) is the EU legislation that regulates firms who provide financial services linked to 'financial instruments'. An enhanced version known as MiFID ii will come into force in January 2018 and will require operators in the sector to record and keep copies of electronic communications, including mobile and fixed line telephone calls for a minimum of 5 years.
The original MiFID was first applied in the UK in November 2007. Now 10 years old and in wake of the financial crisis, it has been revised to improve the functioning of financial markets and to strengthen investor protection.
From 3rd January 2018, the enhanced legislation – MiFID ii – comes into effect and will combine the existing MiFID with a new Markets in Financial Instruments Regulation (MiFIR).
Recording Calls And Email Archiving
One of the key changes will require copies of electronic communications, including emails and SMS as well as mobile and fixed line telephone calls to be recorded and kept for a minimum period of 5 years, where the exchange intends to result in a trade. The parameters will include anyone involved in the advice chain, such as intermediaries.
All data needs to be stored as a legal requirement for at least 5 years and in some cases, up to 7 years, after the business transaction was completed. These recordings need to be accessible, encrypted and monitored.
Those failing to meet the conditions set out under MiFID ii could face significant fines up to 40% of annual turnover and risk reputational damage.
According to industry insiders, many are yet to address the new rules and predict large numbers will fall foul of them beyond implementation next year. Thankfully, there are several solutions available to help those who are yet to overcome the challenge.
MiFID ii And The GDPR
There has been some speculation that this regulation conflicts with the General Data Protection Regulation (GDPR) which gives individual’s the ‘right to be forgotten’. The common understanding is that a person can ask for all of their personal details to be removed from a company database.
So, how does this fit with keeping records of conversations for up to 7 years under MiFID ii? Article 17 of the GDPR states:
“The right to erasure does not provide absolute ‘right to be forgotten’.
Individuals have a right to have personal data erased and to prevent processing in specific circumstance.”
However, those circumstance do not include where the data is required to comply with a legal obligation, such as this.
To see the full article please visit the Information Commissioner’s Office website.
How Air IT Can Help
As a complete IT and business communications provider, Air IT can help you capture and record all of your incoming and outgoing business telephone calls. We have a number of options available, including cost-effective VoIP solutions and the award-winning 3CX Phone System.
As an elite 3CX Platinum Partner, we specialise in the supply, installation and maintenance of the 3CX Phone System, which comes equipped with enterprise features as standard.
As well as significant cost savings, the 3CX Phone System will capture and record all incoming and outgoing calls. As a Windows based and unified communications solution, 3CX provides extensive reporting capabilities allowing you to access past calls under one easy to use management console. Combined with the specific soft phone application, this capability can also be extended to all of your business mobiles.
Businesses with company and staff owned devices, otherwise known as Bring Your Own Device (BYOD) could also benefit from a managed mobile service covering usage and access at policy level.
Cloud Email Archiving
We can also offer complete email archiving to help you preserve all of your inbound, outbound and internal email communications in one centralised and secure application.
Built with compliance in mind, we can help you reduce risk and retain your electronic communication records safely and securely.
Contact Us Today
Whatever your needs, our team of ICT experts will work with you to source and implement suitable solutions to help you meet and comply with the new requirements set out in the MiFID ii regulation.