According to the Financial Times, there’s a “leviathan lumbering down the track” in the financial industry.
What they’re referring to is MiFID II, the Markets in Financial Instrument Directive. Seven years in the making, it is designed to protect consumers by making financial markets more transparent.
What is MiFID II?
While the language can seem daunting, it’s really very simple. At its essence, this European Union legislation requires that everything that relates to a transaction needs to be recorded.
That means all phone conversations and electronic communications about potential transactions have to be recorded. They have to be stored in a way that doesn’t allow them to be altered or deleted, and they have to be available and searchable for between five and seven years.
So why is this a problem?
There are two main issues that financial firms may experience with these requirements.
First, it is no longer reasonable to expect staff communication to be limited to desk phones or approved corporate-issue devices. The personal mobile doubles as business phone, as well as carrying all of an employee’s private communications and apps. While this makes sense for staff productivity and convenience, making those phones compliant becomes difficult. It’s essential to implement a recording solution that is secure, cost-effective, easy to use, and only records calls when needed.
Second, while banks have always recorded voice calls to resolve disputes at some level, finding any and all conversations leading to transactions is a more onerous task. Traders talk to customers all day, every day across a multitude of media. From traditional methods like voice, IM, SMS, and email to new technologies like WhatsApp, Bloomberg chat, Skype, and Signal, there is a near limitless number of potential avenues to communicate. Finding an individual discussion becomes akin to the metaphorical needle in the haystack. Meanwhile, listening back to recorded calls has to happen in real-time, requiring staff to sit through hours of conversation that quickly becomes time and cost intensive.
What's the solution?
We can solve the problem of hybrid personal-business phones through the use of new, transformative innovation.
Telstra is working with Movius as a core provider to enable customers to be MiFID II compliant. Movius provides a cloud-based platform for mobile recording that automatically records, stores, and encrypts messages and calls across any device, location, and network, with the ability to seamlessly toggle across WiFi and cellular data to remove breaks in calls, and integrate simply into existing platforms. This means organisations can safeguard company assets, ensure compliance, and empower employees to use their own mobile phone.
Organisations can easily add multiple company-managed numbers to either business or personal phones. Then, through granular insights and analytics into voice, text and data usage, businesses can meet compliance requirements for MiFID II, increase productivity, lower mobility costs, simplify BYOD management, and improve employee satisfaction.
The next stage for recording compliance is building the ability to turn voice into text. By combining every silo of data into one database, aligned with advanced analytical tools, we can truly enable the compliance officer to find all relevant material as quickly as they search for queries on Google. Solutions like Telstra Trader Voice enable voice-to-text transcription for simpler, quicker analysis. Beyond voice-to-text, Trader Voice acts as a complete communications solution for the trading room, providing connectivity anywhere and at any time, SIP routing for simple interoperability, and a flexible cloud-based model to lower the costs of traditional turret systems.
When used in conjunction with Telstra’s unified communications and cloud collaboration solutions, we are able to provide a suite of technologies to solve every organisation’s unique challenges.
Making the most of the opportunity to thrive
While the ‘lumbering leviathan’ of MiFID compliance may seem like an onerous task, new technologies are ensuring organisations can not only meet regulatory obligations, but benefit from doing so.
To find out more on Telstra’s financial services products, please visit https://www.telstraglobal.com/telstrafinance/