support@stormitfinancial.com 
FinTech Trends Newsletter Week 27th November – 1st December 2017
MiFID II countdown: Everything you need to know about call recording retention and retrieval
With regulators across different markets demanding for increased trade transparency and longer retention periods for call recordings; How can financial firms keep on top of their call recording estate? Not to state the obvious but, there is just 33 days left before MiFID II comes into effect on 3rd January 2018. It’s practically Christmas already and cold enough ! Data sits at the heart of the MiFID II regulation and GDPR. MiFID II aims to improve quality of advice and investor protections and in doing so requires extensive data recording. Firms are required to record telephone conversations and electronic communications that relate to “the reception, transmission and execution of orders, or dealing on own account”. Recordings must be stored for at least 5 years for client data and where requested by the regulator, a period of up to 7 years. That allows for the information to be accessible should the competent authority demand it.
The directive also states Investment firms must store records in a way that allows for the information to be accessible and retained in a format that does not allow the original record to be altered or deleted should the competent authority demand it. They must also be able to ensure the quality, accuracy and completeness of the records of all telephone recordings and electronic communications. Longer retention rates create a problem for those firms needing to upgrade their call recording infrastructure. Not only will they have to pay for multiple support contracts across different systems, and in some cases different suppliers, to maintain older legacy systems, they will also need to purchase, install and support the newer ones. In addition, internal staff will also be required to up skill for yet another product to ensure the right calls are easily and quickly accessible in the event of a regulator request.
If you are faced with the challenge of retaining and retrieving calls, there are a number of options available to help you preserve historic call recording audio and data:
Leave your calls in the legacy platform (not advisable) – This is a short-term option. In the long term, hardware or software
component failure can lead to additional work trying to retrieve or rebuild your system. If your call recorder has reached end of life and is no longer supported, adopting this method is risky. If the system breaks, all calls could be lost, with the potential of failing to comply with regulatory mandates or company data security policies.
Migrate recordings to the new platform (better option) – With this option, you’ll have all your recordings located in one place. However, not many systems will allow you to access historical calls, especially if recorded on a system from a different manufacturer. The new system may require original files to be converted to a standard file format and careful scoping will be required to ensure data integrity is maintained during the process. It should also be noted that conversion of audio formats can significantly increase file sizes.
Migrate to a new voice call recording & data management solution (better option) – Access new recordings, using a new modern, cloud based voice call recording & data management system that can access existing recordings from a user-friendly portal. This means compliance and IT teams can efficiently search, extract and playback audio recordings from live calls, regardless of location due to being cloud based. It also benefits your firm in complying to retaining call data for both MiFID II & GDPR for up to 7 years+ in one go. There are certainly great benefits to be gained when adopting a more streamlined approach and simplifying an organisation’s call recording infrastructure using a single portal to access everything. Not only is less internal resource required to manage and maintain user requests for support, less budget (Operational Expenditure) is required to support multiple systems, resulting in substantial overall savings. In a world where technology is advancing at phenomenal pace, it certainly makes sense to look at where technologies can be streamlined and simplified freeing up your time to look at the really important stuff instead, like investing and running your firm.
MiFID II is being introduced on the 3rd January 2018 will have consequences for the way in which your firm and your IT managed services provider manages its IT systems. Understanding MiFID II is the first step towards putting in place the necessary systems and processes to meet the new requirements. Contact Storm IT Financial for help and guidance about MiFID II and it’s effects on your firm, our MiFID II Call Recording & Data Compliant Solutions and how you can align your IT systems to the directive’s requirements.
Storm IT Financial FinTech News & Trends picks: Week 27th November – 1st December 2017
Data protection dilemma: how to tackle Mifid II and GDPR clash
For many businesses, MiFID II and GDPR can be daunting:
Who Wins, Who Loses From MiFID II Shakeup?: QuickTake Scorecard
The effects of MiFID II reach deep into an industry scrambling to comply by January 3rd:
Consultancy rolls out data solutions division ahead of Mifid II
Asset and wealth management consulting firm Alpha FMC has launched a new data solutions division to meet growing demand:
Deutsche Bank Joins Bitcoin Bashing Brigade
Deutsche Bank and their Chief Strategist Ulrich Stephan warns against everyday investors putting their money into Bitcoin:
https://cointelegraph.com/news/deutsche-bank-joins-bitcoin-bashing-brigade
FlexTrade upgrades cross-OMS aggregation tool ahead of MiFID II
Consolidation trend in asset management has increased demand for Flex- Trade’s cross-OMS aggregation tool:
Here’s What the World’s Central Banks Really Think About Bitcoin
8 years since Bitcoins birth, central banks worldwide are increasingly recognising the potential upsides &downsides of digital currencies:
Coinbase goes after institutional investors with new cryptocurrency storage platform
San Francisco-based cryptocurrency exchange Coinbase hopes to change perceptions with its new platform for big money investors like hedge funds, family offices, and sovereign wealth funds:
Cybersecurity Terms Business Owners Should Know
There are several basic terms beyond “virus” and “hackers” that businesses owners should know…:
Big data and software robots crunch compliance costs for Credit Suisse
Credit Suisse; “new big data platform & software ro- bots are reversing years of rising compliance costs”:
Boards Should Take Responsibility for Cybersecurity. Here’s How to Do It
News of data breaches & ransomware attacks making headlines, cybersecurity is on the agenda:
MiFID II creates “much uncertainty” for EEA members
European Economic Area (EEA) members remain in the dark over the EU’s authority to impose MiFID II….:
Regulation vs innovation: what do the experts think?
Does regulation stifle innovation? Find out what panellists at the Thomson Reuters Risk summit think:
