Is UC Technology the One-stop Answer to MiFID II Communications Compliance?

Is your business ready for MiFID II?

It’s a question finance directors, IT specialists and senior business managers the country over will be asking themselves as the January 2018 deadline approaches. MiFID II is a change to the way we do business in the finance sector that will have huge implications, whether you’re working in a growing startup or a much larger established business.

While the remit of the new regulations is far reaching, one component which may be less complex to address is that of communications. Can UC (unified communications) technology be the answer?

Communications requirements for finance businesses

MiFID II is the latest incarceration of the MiFID regulations that originally date back to 2004. The updates to the regulations are intended to protect the financial markets and their customers, by facilitating greater transparency and mitigating the risks associated with the financial crisis of the early 2000s.

The communication element of MiFID II means that firms must record all communications with their clients where a transaction is expected, achieved or intended to occur. According to the official documentation of MiFID II’s organisational requirements, “records shall include the recording of telephone conversations or electronic communications relating to, transactions concluded when dealing on own account and the provision of client order services that relate to the reception, transmission and execution of client orders”.

Which is all well and good, if you only ever call your clients from one telephone line. Recording all calls taking place on that line is simple. But what if, like the vast majority of modern businesses, your communications are much wider reaching than that? What if, for example, you speak to your clients (and they to you) from multiple telephone lines, from mobile devices, via instant messaging, and using video call platforms?

The organisational complexities of communications recording

The organisational complexities of communications recording for MiFID II are certain to be a challenge for the finance sector. Not only must all communications be recorded, that recording must be stored – bringing in further questions when the latest update to data protection rules, GDPR, take hold next May.

That means that every communications method used within a business will need to be noted and tracked. In the modern ‘bring your own device’ world, this increases complexities, when finance professionals want to be available to their clients on all communications platforms, but are now having to query whether that platform is adequately prepared to monitor the conversations as required.

Unified communications technology for the finance sector

One solution many businesses in the finance sector are now looking to is that of unified communications and, specifically, the use of cloud based UC tools that make communication easier whilst also meeting the recording requirements of the new regulations.

What UC essentially means is that all communications are managed on one central platform. This encompasses text, telephony, instant messaging and video calling, all of which are controlled and monitored via one portal, making the recording element of the MiFID II requirements a much more streamlined process.

Using a UC application like Skype for Business, for example, enables organisations to provide their employees with a secure and recorded way of communicating, no matter what device they are using – even on their own devices, as they can download the Skype for Business app.

With UC applications, finance businesses are able to meet the obligations under MiFID II that says “an investment firm shall take all reasonable steps to record relevant telephone conversations and electronic communications, made with, sent from or received by equipment provided by the investment firm to an employee or contractor or the use of which by an employee or contractor has been accepted or permitted by the investment firm”.

The key thing is that it is not dependent on the actual device any longer – which means compliance is a much faster process. By selecting a cloud-based technology over a hosted option, security is enhanced too, as any risk of hacking or interception is reduced by more strenuous encryption.

Many businesses in the finance sector, in spite of the rapidly deadline, will still have a lot of questions about MiFID II. But with unified communications a potential solution for the entire communications element, becoming compliant could be that little bit easier.

Written by Alex Tebbs, founder at VIA