Keeping harmful and abusive financial practices and customer data protection in mind, the MiFID II was created to increase transparency within the financial services industry. Among the many rules, the MiFID II also regulates communications between European Union (EU) banks and its customers and clients. Let’s look at call recording compliance under this regulation.
What is MiFID II?
MiFID II or the Market in Financial Instruments Directive II came into effect in 2018. This EU legislation follows the old MiFID version by enforcing rules that prevent breaches and malpractices within the finance industry. Institutions like EU banks, interdealer brokers, stockbrokers, etc., are regulated under this ruling.
Call Recording Compliance Under MiFID II
Among others, MiFID II requires business communications — telephone and electronic correspondence — be recorded. More specifically, correspondences that “result in transactions concluded when dealing on own account and the provision of client order services that relate to the reception, transmission, and execution of client orders,” according to its policy statement. Additional types of communication that fall under the legislation’s call recording requirements include those between:
- Bank and selling shareholder or bank and buyers relating to the purchase and resale of a block of securities.
- Bank and its corporate client and bank and sellers in relation to the purchase of securities in “buy-back” transactions.
- Bank and buyers regarding the resale of shares purchased by an underwriting bank.
- Bank and its clients and bank and a third-party seller/broker regarding purchase of securities as part of a stakebuilding exercise.
Complying with MiFID II
Financial services companies, as a precaution, should comply with the regulations of the MiFID II legislation. Doing so can increase transparency and reduce liabilities, especially if your company conducts business appropriately and in its best interest. So, how do you record calls to be in compliance with MiFID II?
You can invest in recording technology or a call recording software or choose a cloud-based solution. Recording technology like devices and recorders can prove expensive and may not produce high-quality recordings. Additionally, they will require physical storage space. Call recording software may be a better alternative but not all come with unlimited or cloud storage. Most virtual phone service providers, interestingly, offer call recording solutions that let you store recordings on the cloud for a certain amount of years. And the quality of such recordings is generally good, depending on which provider you work with.
Global Call Forwarding offers call recording as an additional feature for a small monthly fee. With this feature, you can record up to 100% of all inbound and outbound calls. The calls are stored as MP3 files and are stored for up to six years. Additionally, you have the ability to record over different channels and devices. And since this comes along with your business number, you don’t have to purchase special equipment.
Other Reasons to Record Your Calls
Call recording is a popular choice with businesses that carry out transactions involving sensitive information and customer data through communication systems. Recording and storing such data can help reduce liabilities, both business and personal. Additionally, it can be useful with regard to quality assurance. Utilize recordings for training purposes and to teach employees what to do and what not to do on calls. Create and uphold a company standard that is reflected in the way your business interacts with its consumers.
Get Call Recording with Global Call Forwarding
Setting up call recording for your office phone system is easy. You can purchase a business number or port your existing one to Global Call Forwarding and add the feature to your service. Then, you can record 100% of your calls or adjust to record as many as you need. Access recorded files and important customer information quickly all while following the MiFID II regulations. Sign up today or call us at 1 (888) 908 6171 to learn more.
