Helping you get MiFID II ready…

Jun 2nd '16

Most businesses are aware of the Markets in Financial Instruments Directive (MiFID) II and how it will impact them from a trading governance perspective, but many have yet to get their heads around how the new, expanded rules will affect their recordkeeping requirements.


Whilst the deadline for implementation continues to be pushed back, the requirements for recordkeeping are both certain and extensive. It is important firms start to consider and prepare for the new rules now, to avoid running out of time in preparation for MiFID II compliance.


From the 3rd of January 2018, businesses will be required to have systems and processes in place to capture, retain and reproduce complete records of all services, activities and transactions on both firm and client accounts.  And this includes ALL telephone calls and forms of electronic communication.


Smarsh is on hand to help businesses prepare for the changes and navigate the new landscape.  In the first in a series of white papers on this issue, we summarise the revised telephone and digital communications recordkeeping requirements and outline a suitable comprehensive archive approach to recordkeeping; the most reliable, efficient and cost-effective means for firms to demonstrate they are MiFID II compliant.


Telephone and Electronic Communications Recordkeeping – a game changer

Aimed at improving investor protection, MiFID II requires a much stricter governance process for all forms of communication, disclosure and transparency.  Taking recordkeeping to a whole new level, businesses will now have to include not just communications that conclude in a trade, but all those telephone conversations and electronic communications that are intended to conclude in a trade.


Furthermore, businesses will be obliged to retain all these communications for a period of 5 years and in some cases 7 years, depending on the local jurisdiction. This will mean an ‘all-inclusive approach’ to communication management. Firms will have to ensure electronic communications and telephone conversations on both privately owned and firm issued equipment are being captured, supervised and retained, for permanent and contracting staff.  If a business is not in a position to record or copy communications made from privately-owned equipment, they will be at risk of non-compliance.


The sheer scale of MiFID II legislation, and its associated regulations is immense but by starting to prepare for the electronic communications and voice regulation obligations now, firms can be ready for the MiFID II implementation date and rest assured they will have met the European Union’s trading community deadline for compliance.


To satisfy the full scope of requirements, we believe firms will be best served by a single, comprehensive archiving solution and we are here to help. Download Preparing for MiFID II & MIFIR Recordkeeping’ White Paper for some helpful tips or get in touch via 0800 048 8612.


About the author: Anna Carless Director of EMEA Marketing at Smarsh


Anna Carless is director of EMEA marketing at Smarsh, where she is responsible for creation and implementation of marketing strategies, campaigns and tools to drive European market growth.


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