As a new year starts, it’s time to consider the future – more specifically, the 3 January 2018, when MiFID II comes into force. With now less than a year to the deadline, we look at essential timeline elements in the third instalment of our MiFID II blog series.
All organisations involved in investment management, financial instruments and trading will have to comply with MiFID II, whether a large international enterprise or a small business. For those that planned for the original January 2017 deadline, the postponement to 2018 is a short window of respite – while for those yet to finalise their implementation, it’s time to get things finished. However, all organisations should be aware that the deadline will not shift again, and the penalties for non-compliance will be severe.
A significant part of MiFID II is Mobile Voice Recording (MVR), and there are several elements that should be considered within the timing plan.
Firstly, auditing the end dates for all current mobile phone contracts will be essential. For those contracts ending in the next twelve months, resigning with your incumbent provider now (where the provider can include a suitable call recording solution that meets your requirements) could simplify your roadmap – though pay close attention to contractual obligations. But where a contract end date runs into 2018, some negotiation may be required to reduce costs for cancellations/terminations within your mobile estate. Getting this completed early can help make preparations smoother, and ease some of the later stages too.
The message here is to ensure you have complete awareness of your contract end dates (specifically for those users who will need mobile call recording) and understand if you face any termination fees for leaving your current supplier (or onerous contractual alterations if you stay where you are).
For those who know what call recording solution and provider they intend to use, it’s time to double check those requirements and ensure the technicalities (and costs) match what you anticipated.
If you’ve yet to evaluate the product landscape then it’s time to go to market and start having conversations with providers (and where possible, look for referrals of who to use for your call recording requirements). You’ll be evaluating app based and network level call recording as the two ‘standards’ and upon making that decision you’ll be engaging with one of more potential companies to understand the technicalities of their product, the costs and that all important service wrap that must ensure your compliance teams and end users are well supported. We’ll be talking more about product evaluation in our next MiFID II blog.
Once you have selected a suitable solution, it’s time to implement and test. While network level call recording (should that be your choice) involves no end user training requirement, you will want to ensure that your compliance management processes are tested. One of the core requirements of MiFID II is the on-going management and testing of compliance processes, and mobile calls aren’t an exception. Setting out a process for testing that calls are being recorded is, therefore, necessary.
Documenting this call recording test process is a worthwhile exercise; this can be used to demonstrate to the regulators that the compliance team is putting in place processes, which are as stringent as possible. This content can also be added to work contracts as standard to ensure that everyone knows that their mobile calls will be recorded in the future.
Finally, planning some training for call recording should help compliance managers be familiar with how calls are stored and recalled. And getting this completed in advance of the 3 January 2018 deadline should prevent any confusion.
To find out more about what MVR will mean for your business and how we can help you, get in touch today.