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Regulatory compliance - What is the Urgency, surely my current recording solution covers me?

In just 7 month’s time in January 2018, all financial firms will need to comply with one of the broadest pieces of financial industry legislation ever, MiFID II. Article 16 imposes broad changes on the need to record mobile conversations, with recent FCA guidance inferring ALL business mobile conversations must be recorded, and final guidance due in mid 2017.

Financial Institutions must now urgently implement technology solutions that meet MiFID II requirements, which combined with the drive to BYOD (Bring Your Own Device), is creating a sense of urgency as the deadline approaches, just as it did in the previous MiFID implementation in 2004, when many banks scrambled to deploy solutions at the last minute. This situation is being exacerbated by conflicting GDPR regulation due in May that mandates that firms are prohibited from recording and storing their employee’s personal conversations. This means there is a conflict coming between the need under MiFID II to record all conversations about potential transactions, mobile or otherwise, and the need to protect the personal privacy of the employee.

Firms now need to ensure their solutions balance these needs and so avoid swingeing penalties, using VENNCOMM’s solution a firm can run two numbers on one device, a dual persona, with one recorded for work related communications and one entirely separate and unrecorded. This solution can work on either BYOD employee owned devices or corporate devices in a completely secure and fully compliant way.

What are the key regulations?

Within any country of operation an organisation must comply with the set laws which apply in that jurisdiction. However, different jurisdictions will apply different regulations for people and organisations to comply, and unlike many solutions currently available, VENNCOMM’s best in class solution offers true global compliance with a full feature set that ensures risk mitigation on a global basis.

VENNCOMM has built market-leading technology to satisfy demand created by MiFID II and GDPR, an opportunity further powered by the almost universal goal of large firms to maximise their employee BYOD programs. These programs allow staff to use their own devices at work for calls, email, SMS and Chat thus saving significant cost on handsets for corporates.

Financial regulations

In the past 20 years there have been a significant number of high (and low) profile cases where organisations and individuals have acted in a particular way that would be considered market abuse.

As part of the tightening regulatory environment, some financial authorities (including those in the US and UK) are introducing ever-increasing requirements for organisations to be able to provide accurate and untampered records of conversations conducted via voice and other electronic means.

Compliance to specific financial regulations

FCA COBS 11.8 

The FCA has required, since November 2011, that those directly involved in equity or commodity trading have their calls and texts recorded. VENNCOMM TALK can help organisations meet these requirements on both company-provided and personally-owned mobiles.

MiFID II 

When the ESMA requirements under MiFID II come into effect, everyone involved in providing financial advice which may lead to a trade will be required to have their mobile conversations recorded, whether or not they result in a trade. VENNCOMM TALK enforces mobile call recording for regulated users.

Dispute resolution: Protecting against another PPI

Financial services organisations are looking at best practice examples to ensure that they are protected against future PPI type claims. VENNCOMM TALK provides a cost-effective and open solution available for recording calls across the entire corporate mobile estate.

The Dodd Frank Act

Firms are responsible for knowing all communication methods across transactions and retrieving them in a way that allows the ‘reconstruction’ of the communication, both pre- and post-trade.

GDPR

Due in May 2018 GDPR sets out the conditions for firms to meet in protecting employee data with heavy penalties for non compliance.

Mobile recording

As part of the Financial Services Act and the Sarbanes-Oxley Act, specific mobile voice calls must be recorded, and this is set to widen drastically under MiFID II.

As organisations have evolved and with how technology is used as part of overall communications strategies, the ability to comply with these regulations has become more and more difficult.

For example, as organisations began to implement BYOD policies, the ability to record business related calls using BYOD devices diminished, leading to potential non-compliance and the opportunity for market abuse.

Organisations must therefore take steps to ensure they remain compliant with new electronic communication requirements, including mobile voice recording.

VENNCOMM’s solution allows firms to record conversations of course, but also comes with other significant benefits for individuals and organisations as a whole. For example, being able to record, search, retrieve and transcribe conversations in real time increases the ability of individuals to keep records, whilst allowing compliance officers to monitor for market abuse.

Mobile recording compliance with VENNCOMM TALK

With VENNCOMM TALK & CHAT you can record any or every call, SMS or chat made through the device, play it back at any time and even request a transcript of calls made.

The call recordings are available to every VENNCOMM TALK user who was invited to the call, whether they participated or not, and also to account administrators to monitor activity and ensure that any/all calls can be recorded if requested by a governing body.

VENNCOMM TALK & CHAT is compliant with the set regulations from the USA, UK and also other countries where call recording is required by law to stop financial market abuse.

VENNCOMM TALK & CHAT also features a keyword search which enables a user to search for particular words or phrases during the call. Once found, VENNCOMM TALK will skip 30 seconds before the keyword was used to ensure the context of the keyword can be heard.

Using VENNCOMM TALK & CHAT compliance officers can ensure that, even with a BYOD policy, calls, chats and SMS can be recorded on personal or corporate devices, allowing real time monitoring and transcription, with a full feature set allowing API connection with trade data, Bloomberg messaging and other electronic communications.

Request demo

If you would like to understand more about how VENNCOMM and our products can help you become compliant with various call recording regulations, enter your details via the form.

We will arrange for one of our consultants to contact you to organise a demonstration of our technology.