MiFID II - What is it and are you ready?
What's MiFID II?
The Financial Conduct Authority (FCA) currently mandates that only the telephone conversations of individuals directly involved in trading need to be recorded, but Markets in Financial Instruments
Directive (MiFID II) broadens the scope considerably to include anyone involved in the advice chain that may result in a trade. Furthermore, the legislation applies to both fixed line, mobile conversations and messaging, and all calls must be stored and accessible for a minimum of five years after taking place (seven in some instances).
As a result, network based mobile and fixed line recording and storage will be central to the new provisions timetabled for introduction on January 3rd 2018.
Are your customers ready?
A survey was undertaken involving 250 IT decision makers and risk and compliance managers working in the Financial Sector in late 2016. The study was to gain an insight into the understanding of MiFID II within these companies.
The survey found that most were unaware of the penalties involved:
What's the opportunity?
The requirement for regulatory communications recording is set to increase substantially. Based on our research (above) we are anticipating a minimum of a 400% increase in the requirement for MiFID II related services. The nature of this growth also suggests it will act as a catalyst for the take up of Cloud based services, enabling companies to react quicker and take advantage of technology and service innovations in this sector.
Interested? Then give us a call on 0141 404 5441