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MiFID II in a Nutshell 

Financial Institutions
MiFID II
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If you work in the financial services sector, you've almost certainly heard of MiFID II.

If you haven't, don't fret – this post has you covered. Whether you're an expert in MiFID II or not, it effects every organization working in finance and related services today.  

Luckily, as expert MiFID II mobile recording partners for some of the largest financial institutions in the world, 1GLOBAL knows everything about these regulations. Here, we explain what exactly MiFID II is and how to stay on its good side. 

 

What is MiFID II? 

MiFID II, or the second Markets in Financial Instruments Directive, is a set of legislative regulations that came into effect in 2014. Adopted by the European Commission, its purpose is to prevent breaches, disorderly trading and market abuse in the financial sector. It brought the previous regulations (MiFID) up to speed following the 2007 financial crisis. 

 

Who Does MiFID II affect? 

MiFID II affects a range of firms that provide or advise on financial instruments or services in the EU, including but not limited to… 

  • Investment firms 

  • Credit institutions 

  • Portfolio managers 

  • Broker-dealers 

  • Stockbrokers 

  • Corporate finance companies 

  • Market operators 

  • Central counterparties 

Some smaller financial firms, such as small independent financial advisors, are exempted from most of the more onerous regulations about recording all client interactions. Even they still have to keep a manual log of all transactions. 

 

What are the MiFID II Requirements? 

MiFID II required organizations to adopt a range of practices that, for the most part, were already part of financial regulations in countries like the UK. As well as keeping full records of all transactions and trades, financial organizations now had to keep full records of the conversations leading up to a transaction. 

One of the key requirements of the MiFID II regulations is the need for an all-encompassing call recording solution. Covered parties are required to: 

  • Record telephone calls, mobile calls, SMS and electronic communications. 

  • Keep records of these calls for five years (seven if requested by an NCA.) 

  • Tell your clients or customers that you’re recording their calls, along with providing them with recordings if requested. 

  • These measures relate to all interactions where professionals intend to instigate a trade or provide a service, including portfolio managers.  


MiFID II Recording Explained 

Under MiFID II regulations, all communications that are intended to lead to a transaction, even if a transaction doesn't ultimately occur, must be recorded. This means that mobile call recording must be in operation at all times to meet the regulation requirements. 

Many call recording solutions can impact on call quality, creating delays or interference in the line. Other solutions use apps, which members of staff may forget to activate or enable. 

Thankfully, 1GLOBAL's solution uses our unique and patented Call Forking technology. This ensures that there's no degradation in call quality and every single call and SMS from your phone is recorded on either your on-site server or hosted in our cloud - for you to access at any time. 

 

Courtesy Notices

Another legal requirement of MiFID II regulations is that you play a pre-recorded message to your customers, making them aware that the call is being recorded. 1GLOBAL's solution offers a variety of options, in multiple languages, to meet your organization’s protocol. 

Finally, just like our network, our recording solution is completely global, with every single call being recorded - no matter where you are

As mobile recording experts with industry leading patented technology, we help financial institutions of all scales meet the MiFID II regulations, seamlessly and securely. 

For more information on how to easily and securely meet your compliance obligations, request a call back or continue reading about 1GLOBAL Mobile Recording. 

About 1GLOBAL

1GLOBAL is a distinguished international provider of specialty telecommunications services catering to Global Enterprises, Financial Institutions, IoT, Mobile Operators and Tech & Travel companies. 1GLOBAL is an eSIM pioneer, a fully accredited and GSMA-certified telco, a full MVNO in nine countries, fully regulated in 42 countries, and covers 190+ countries.

It delivers comprehensive communication solutions that encompass Voice, Data & SMS - all supported by a unique global core network. It’s constantly expanding portfolio of advanced products and services includes White Label eSIMs, Connectivity Solutions, Compliance and Recording, Consumer & M2M SIM Provisioning and an Entitlement Server.

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1GLOBAL is a trading name of TP Global Operations Limited.