Everything You Need to Know About MiFID II Call Recording

  • Posted by dubber
  • December 12, 2016 12:58 PM GMT
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The EU are extending their pre-existing MiFID legislation to tighten restrictions on the financial sector. The updated directive - known as MiFID II - now includes IFAs and Wealth Managers in the job roles that must comply with a call recording legal requirement, and have extended storage expectations as well.

The EU have announced new MiFID regulations that will place further restrictions on the financial sector. Current regulations require all financial employees who are directly involved in trading to record their calls, but the new MiFID legislation will extend this requirement to cover anyone providing financial advice that may lead to a trade. For the first time, call recording regulations will now apply to wealth managers and Independent Financial Advisors (IFAs). The new legislation also states that organisations must store recordings for five years in a secure environment and implement a system for reviewing and monitoring all client-employee conversations.

These new regulations have been met with a mixed reaction, as many financial firms and IFAs have voiced concerns over the costs and practicality of complying. The new regulation will not come into practice until 3rd January 2018, giving companies sufficient time to gear up for the new rules, but this grace period has not done much to alleviate the concerns of those who are affected.

It has been estimated that using legacy and traditional call recording solutions adds approximately £1,000 – £1,200 to an average phone bill every year – and that is without upfront costs such as installation. These costs can be crippling for smaller firms, and troubling even for the larger companies with huge call recording bills, due to their number of employees constantly engaging with clients and prospects.

Industry commentators have advised firms who are new to call recording to ensure they do not underestimate its costs – as it is not just the actual recording process that requires investment. As customer calls must also be securely stored and managed, companies will be faced with a huge data repository that requires a secure and substantial storage system. As we’ll discuss later in more detail, the new MiFID II requirements require regulated phone conversations be stored for 5 years. Gilly Green, wealth management practice leader at Knadel, suggests that it is this which will present the true financial challenge.  


mifid 2 call recording

The implications of the new MiFID legislation extend beyond just cost:

  • Storage – MiFID II states that all recorded conversations must be stored for 5 years. Companies will need a system with substantial storage capabilities to comply with this.
  • Security – storing such a vast amount of data will be a challenge to traditional storage solutions. Advisory firms will also face customer concerns over security and confidentiality when recording their calls.
  • Retrieving data – legacy solutions do not support smart searching, making it almost impossible to locate a certain sentence of a certain call within a store containing 5 years of recorded data.
  • Implementation – Legacy call recording solutions require hardware installation, the costs of which are generally very high, requiring expert personnel, software licenses and the hardware itself.

The new restrictions will also enforce changes to the operation and organisation of companies; for example, employees working from home will need to ensure their calls are still recorded on their domestic, mobile or VoIP lines. Additionally, the need to store all recorded conversations for five years will require a system that is not only cheap and easy to implement, but that is secure, has unlimited storage and from which data is highly accessible.

Put simply, all firms who are new to a call recording requirement, or that need to upgrade existing platforms, will need to implement a recording solution that is secure, cost-effective, easy to implement, easy to use, offers near-unlimited  storage, is able to record calls only when needed to save on costs and that allows call recording on individual phone lines. Legacy solutions require hardware, which prevent the call recording solution from providing all of these requirements.


Enter Dubber. Dubber’s communication capture solutions are evolutionary in their use of a native cloud based platform, eliminating the flaws of legacy solutions and opening up a myriad of applications and benefits for all users. The most exciting of these innovative applications is Playback, a communication capture service aimed at the individual. Dubber’s Playback brings the benefit of hindsight to a user’s communications, enabling them to save, playback, browse, tag and share their calls, after the call is made. Playback is perfect for assisting financial firms with MiFID II compliance, as it provides a communication capture solution that is both cost-effective and catered to the individual. As an individual solution, Playback can be used by IFAs and financial employees who either travel or work from home. As ‘pay-as-you-go’ service that allows users to capture only the necessary calls and to save only those that they wish to save, Playback reduces the cost of call recording and eliminates the need to invest in a platform which may not even be needed post-Brexit.

Playback can capture business calls whilst keeping personal calls private, be used whilst mobile and protect the confidentiality of customers. Playback makes compliance cheaper, easier and less time-consuming for companies, whilst still protecting the confidentiality and security of financial information.