ESMA – MiFID II and the need for monitoring of phone calls

LinkedIn article by Rob Weston, Managing Director at KPMG

ESMA, European Securities Markets Standards, has provided more clarity on the need for monitoring of phone calls under MiFID II stating that:

“The monitoring of records of relevant telephone conversations and electronic communications is necessary to assist the firm in ensuring that it is meeting the recording requirements and also adhering to its wider regulatory obligations under MiFID II”

ESMA goes on to give examples of the need for call monitoring ” ..it will assist the firm in meeting its wider regulatory obligations which include but are not limited to having policies and procedures in place in respect of its client order handling, best execution, own account dealing obligations and the deterrence and detection of market abuse.”

ESMA also concludes that the recording of the calls should be considered “critical or important infrastructure” and Monitoring should be “conducted regularly and when necessary on an ad-hoc basis. Due regard should also be given to any emerging risks.”

Details are available on the “ESMA – Questions and Answers on MiFID II and MiFIR investor protection topics

 

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