MiFID II | FCA Compliance
- The Financial Conduct Authority (FCA) currently implements MiFID, a legislation which was first applied in the UK from November 2007 to regulate firms who provide services to clients linked to financial instruments and the venues where those instruments are traded. However, to improve the functioning of financial markets and to strengthen investor protection, MiFID has been revised, and along with a new Markets in Financial Instruments Regulation (MiFIR), makes up the new legislation which will be known as MiFID II – this new legislation is now in place as of the 3rd of January 2018.
Call Recording – key changes that come under MiFID II include:
- Currently, only the telephone conversations of individuals directly involved in trading need to be recorded. However, MiFID II broadens the scope of recording considerably to include anyone involved in the advice chain that may result in a trade, with this applying to fixed line, mobile conversations and messaging
- Call recordings must now be stored and accessible for a minimum of five years (seven in some instances), a significant increase from the current minimum retention period of 6 months.
As a result, network-based mobile / fixed line recording and storage will be central to the new legislation – as of the January 3rd, 2018.
MiFID II affects a wide range of firms, particularly:
- Interdealer brokers
- Firms engaging in algorithmic and high-frequency trading
- Trading venues including regulated markets, multilateral trading facilities, and prospective organised trading facilities
- Prospective data reporting service providers
- Investment managers and investment advisers
- Stockbrokers
- Corporate finance firms and venture capital firms
