Working within the finance sector you’ll be all too aware and familiar with the term MiFID, and MiFID II, but what does it mean for you?
MiFID II in Summary
MiFID II came into force on January 3rd, 2018 and impacts any alternative investment managers trading in the EU. MiFID II replaces MiFID (The Markets in Financial Instruments Directive) that was introduced on November 1st, 2007.
The introduction of MiFID was and still is the EU’s legislation for regulating firms dealing with financial services such as bonds, shares, units in collective investment schemes, and derivatives.
To read more about MiFID II click on the headings below
The European Commission revised the current MiFID framework and concluded that change was needed. As a result of this, the European Commission identified that the revised legislation needed to cover the following areas: –
- strengthen investor protection
- reduce the risks of a disorderly market
- reduce systemic risks, and
- increase the efficiency of financial markets and reduce unnecessary costs for participants.
Financial firms need to pay particular attention to how they handle, manage, report and transact within the EU. This means that if you trade financial services within the EU, you need to be able to: –
- store data for up to seven years if requested by the FCA, but as a minimum five years retention is required
- call recording is a requirement if the calls relate to transactions. This applies to landlines and mobiles
- keep data records for auditing purposes, and
- carry out transaction reporting so that trades can be reconstructed whether or not they were executed.
You Must Be MiFID II Complaint
As we’ve outlined above, financial firms must be compliant with the latest regulations; otherwise, they face a fine for non-compliance up to €5 million or 10% of their annual turnover – whichever is greater.
MMRIT’s Compliant Telecom Solution
MMRIT provide a feature-rich, MiFID II compliant hosted telephony solution that provides:
- Call recording. You can record inbound or outbound calls for compliance, customer service, or audit purposes. With MMRIT Telecom, our feature-rich hosted solution provides secure online access to file storage and retrieval of call details, along with the flexibility to record some calls, all calls or record calls on demand.
- Management reporting. MMRIT Telecom offers in-depth call management reporting for easy retrieval.
- Business continuity. Unexpected events such as snow, floods, fire, strikes, or utility roadworks won’t disrupt your business. MMRIT Telecom is hosted in the cloud providing you with business continuity features that allow your organisation to carry on making and taking calls, whatever the circumstances.