Whitepaper: Making Sense of MiFID II
Who is affected by MiFiD II?
Corporate finance companies
Data service providers
The State of Play Today
There are various ways that firms today are meeting the FCA call recording requirements, utilizing current call recording technology. Many systems are unable to handle mobile call recording and in order to get around this some firms have completely banned the use of mobiles for trading. This “management by policy” is effective but somewhat limiting for the firm and removes a number of effective and valuable communication channels that could be delivering business efficiencies. Some firms only allow trades to take place through a trading desk. All calls made by the trading desk would be recorded and therefore compliant under current legislation. A number of firms also wrongly believed that trades which happened when traders used personal mobiles, were not covered by the legislation and they were therefore not liable – particularly if the traders had signed a declaration stating that they would not trade on devices that were not corporately owned. The onus on the recording of the calls still lies with the trading organisation who must be seen to have taken all reasonable steps.