Summary
What this article covers in 30 seconds
- Heavy regulatory change had overloaded many compliance functions.
- More compliance staff did not remove technology gaps in evidencing MiFID II compliance.
- Recordsure’s CTO identified gaps in face-to-face and some telephone advice monitoring.
- Recording and retrieval tools can help evidence compliance and reduce manual processes.
The wealth of regulatory change that financial services institutions have needed to comply with over the past two years has resulted in an overload of many compliance functions. As a result, many firms are in the unenviable position of being behind the MiFID II curve with pockets of residual activity that still need to be undertaken.
Despite an increase in compliance staff on the ground to achieve the required changes, there remains a gap in implementation of technology which will help firms provide evidence of compliance with MiFID II. Many financial institutions are only just, with the deadline now behind us, rushing to buy recording tools to make sure staff comply with the rules.
Technology gaps after MiFID II
Speaking to S&P Global in December, Kit Ruparel, CTO of Recordsure, said “The banks are, in general, ready for complying with MiFID II on remote advice. However, when it comes to face-to-face advice, particularly that which is conducted out in the field, in the business banking, private banking, and wealth management sectors, there is a real gap. There is also a gap when it comes to telephone conversations that may or may not constitute financial advice … regulators have not been great at communicating how much monitoring is required.”
We have seen an increase in the number of firms investigating recording solutions, such as Recordsure, that will facilitate quick recording and easy retrieval of the conversations that relate to a transaction. This ‘belt-and-braces’ approach ensures firms can not only evidence compliance with MiFID II, but can rely upon an authentic and accurate recording mechanism that does away with manual processes.
Frequently asked questions
Regulatory change overloaded compliance teams and left residual MiFID II work still to complete.
Kit Ruparel identified gaps in face-to-face advice, field-based advice and telephone conversations that may constitute financial advice.
They can record and retrieve transaction-related conversations and provide an authentic evidence mechanism without manual processes.