support@stormitfinancial.com 
FinTech Trends Newsletter Week 25th September – 29th September 2017
MiFID II Data Requirements: It’s All about the 4 R’s – Record, Retain, Reconstruct, Resilience
comes into force in January 3rd 2018 & it will regulate the financial services sector with a new, much stricter set of rules
around call recording & data storage. Storm IT Financial utilises compliant technology to help you comply & stay regulated.
Following on from this weeks AQMetric s successful MiFID II event, I kept on being asked about the 4R’s I spoke about. So, to help our clients & buy side firms guarantee MiFID II compliance for your data and call recording requirements, I thought I’d go more in-depth about the 4 R’s I spoke about.
1. Recording & Quality
One part of MiFID II regulation are the recording of all calls in securities trading, deal advice and calls which will/may result in transactions. The legislation requires comprehensive and evidence-proof recording and archiving (storage) of calls that may result in transactions regardless of the channel: phone, video call, chat or e-mail. These recordings serve as
evidence when regulators or investigators request to review a client’s history, the trade & deal calls captured need to be of sufficient quality to begin with. Safeguarding tape quality and integrity also means that records must be
stored in a medium that prevents the original file from being modified, deleted or tampered with. Ask yourself how much data your organisation will have to support in the long term. Does your storage infrastructure need an upgrade to cope with the data volume for 5 to 7 or more years? Now is the time to plan ahead.
2. Retention of Data Capacity
You can only ensure absolute compliance if all deal and trade-related communications are correctly, completely, continuously and reliably recorded and retained. Firms are required to keep records available to clients for 5 years and for up to 7 years for regulators. This calls for a resilient call recording solution that provides failover and recovery options. Data storage costs money and space. Make sure you plan and have the capacity for this.
3. Reconstruction Event Capability
There is no doubt that, upon request by a regulator, companies will have to be able to quickly reconstruct events based on recorded conversations, data, files and emails. Firms are required to provide all data evidence relating to an FCA investigation to be readily available within 72 hours of a request by the regulator. The expectation for financial services firm will be to provide complete client histories within the time parameters set and thereby the expectancy of the competent authority.
4. Resilience of System & Solution
You can only ensure absolute compliance to MiFID II and the regulators like the FCA, if all trade-related communications are correctly, completely, continuously and reliably recorded and retained. This calls for a resilient call recording and data caption and storage solution that provides failover and recovery options. Something Storm IT Financial can advise and help you with, with our MiFID II Call Recording Compliant Solutions .
The new demands are broad and while thinking about the above, you may have already become aware of potential compliance gaps, data storage issues and mobile strategy challenges this new legislation will pose, but it needn’t be as daunting as it might first appear. If you find yourself a technology partner, like Storm IT Financial, that works in partnership with your firm and complements your
compliance call recording solution with platform, network, system integration and managed services expertise, you’ll be walking a path that achieves compliance put in place to boost employee productivity, customer experience and peace of mind.
Storm IT Financial can help guide, prepare & advise firms on IT, technology, communication so you can deal with the regulatory & compliance burdens now required by the FCA, MiFID II & GDPR. If you’d like more details on communications, voice call recording, data management, disaster recovery, back up, cybersecurity, regulatory & compliance technology and managed solutions for your alternative investment, hedge fund, wealth manager and private equity firm, please contact Storm IT Financial for more information.
Storm IT Financial FinTech News & Trends picks: Week 25th September – 29th September 2017
Microsoft ‘adds more encryption to Azure to fend off spy agencies’
Microsoft’s confidential computing platform will hide data from prying eyes:
The Rise of AI First World in Financial Services
Will Artificial Intelligence (AI) become a core part of your IT systems and digital fabric? Absolutely:
https://www.finextra.com/blogposting/14386/the-rise-of-ai-first-world-in-financial-services
Thomson Reuters introduces LEI profiling service for MiFID II
Thomson Reuters launches its LEI (legal entity identifier) Profiling Ser- vice, to perform a health check on their LEI content for MiFID II:
Fintech firm opens up ‘elite’ investments for wealth managers
Some of the more esoteric parts of the investment management world is to be opened up to wealth managers through a new investment platform:
The Massive Hedge Fund Betting on AI
Initially wary of the technology, Man Group was soon persuaded by the returns from algorithm-centric funds:
https://www.bloomberg.com/news/features/2017-09-27/the-massive-hedge-fund-betting-on-ai
FCA: Mifid II stragglers to escape disciplinary action
Regulator says firms that can prove they have made an effort to be ready for the January deadline will be shown leniency:
https://www.fnlondon.com/articles/fca-mifid-ii-stragglers-to-escape-disciplinary-action-20170920
Firms shouldn’t bank on a MiFID II ‘regulatory forbearance’
With just 100 days until MiFID II comes into force, there is an indication within the industry that some firms will struggle to complete all of the requirements in time:
http://www.investmenteurope.net/opinion/firms-shouldnt-bank-mifid-ii-regulatory-forbearance/
FCA offers grace period for Mifid II laggards
Firms which failed to meet the July deadline to apply for Mifid II authorisations may not face ‘strict liability’:
Family offices could be wrong about Mifid II
Wealth managers must think that Mifid II will only have a direct impact on the largest financial firms…:
Global fund houses hold crunch talks with FCA to clarify Mifid
New EU rules clash with US law and threaten to disrupt industry’s biggest companies:
Investment managers optimistic ahead of Mifid II
UK Asset & wealth managers are more optimistic about their overall MiFID II situation, says CBI/PwC Survey:
Mifid II is Europe’s chance to recoup ground lost to the US
Global markets will need to adapt as new European rules have global ramifications:
https://www.ft.com/content/b0f09c20-9d11-11e7-9a86-4d5a475ba4c5
