The MIFID II (Markets in Financial Instruments Directive) will come into force in January 2018, with the FCA proposing to extend the current financial sector telephone call recording requirements to IFA firms and wealth managers.
For many financial advisors and wealth managers understanding the complexities of the new requirements is presenting real problems when it comes to choosing a solution. There are myriad call-recording offerings on the market, many purporting to be all-encompassing, record everything packages. But do they actually do what they say on the tin?
For example, ensuring that both incoming and outgoing calls can be recorded on domestic, mobile and internet networks is not straightforward. Added to this the requirement to securely store recordings for five years, and even tech-savvy advisors are struggling to understand whether solutions will completely ensure compliance.
Cloud and Network-Based Solutions
There are cloud-based and network level solutions that can record and store domestic or mobile or internet calls but few that will do all without being prohibitively expensive for smaller firms.
Software as a service (SAAS) or cloud based call recording solutions have become a more popular choice than hardware or network based systems. And for obvious reasons. The advantages of cloud-based systems are reduced hardware, installation and deployment costs along with greater scalability, meaning that companies don’t have the initial layout costs for a traditional in-house system.
A major problem is understanding exactly which solutions are compliance-ready. As a guide, here is a list of solutions profiled by the respected software review system Capterra http://www.capterra.com/call-recording-software/
Telephone Answering Service
So, is there an alternative for IFAs and Wealth Managers? Many IFAs already use a call answering service to answer calls and take messages, and Face for Business offer clients a “catch-all” call recording facility.
It’s a service unique among call answering services, and has proved a very popular feature for our clients in the financial sector. Calls into the service are recorded end to end, including the transferred part of the call. Clients can also record outgoing calls by calling in to us and asking to be transferred to another number.
Incoming calls are not charged for call recording and there is a small transfer cost for outgoing recorded calls, meaning advisers can choose which outgoing calls they record, without paying anything like the subscription costs for cloud or network call recording solutions.
We also use Smart Numbers as a way of integrating their clients’ mobile, landline and VOIP calls and all recordings can also be listened to and downloaded from the client area of the portal.
For more information about this service, please get in touch on 0333 323 1007 or by email
More Information About MiFID II
FCA MiFID II Resources
FCA MiFID II Overview: https://www.fca.org.uk/markets/mifid-ii
Changes to MiFID: https://www.fca.org.uk/markets/mifid-ii/changes
Applications and notifications under MiFID: https://www.fca.org.uk/markets/mifid-ii/applications-notifications
Recent News Articles
FT Adviser: Advisers brand Mifid call recording 'step too far' - https://www.ftadviser.com/regulation/2017/02/06/advisers-brand-mifid-call-recording-step-too-far/
Wealth Manager: Mifid II: how wealth firms can avoid voice recording fines - http://citywire.co.uk/wealth-manager/news/mifid-ii-how-wealth-firms-can-avoid-voice-recording-fines/a989287
New Model Advisor: FCA survey: Only 10% of advisers ready for EU recording rules - http://citywire.co.uk/new-model-adviser/news/fca-survey-only-10-of-advisers-ready-for-eu-recording-rules/a901098