On 3rd January, new regulations came into force with regard to the Markets in Financial Instruments Directive (MiFID II).
The regulations relate to businesses that provide or advise on financial instruments and services in the EU, which if ignored, can result in hefty fines of up to 5 million euros or 10% of their annual turnover, if found to be non-compliant.
The new regulations aim to reach right across the financial services industry and will aim to make the European markets have better transparency and also to restore investor confidence.
Banks, Fund Managers, Exchanges, Trading Venues, High Frequency Traders, Brokers, Pension Funds and Retail Investors will all be affected by the newly updated regulations.
The existing rules were updated to be able to keep up with technological developments and also to bring new regulation to aspects of the financial system.
There is a movement to push the trading away from the phone and onto electronic venues, which come with better monitoring, measurement and surveillance.
Businesses that operate within this sector need to ensure that they have satisfactory compliant recording technology in place, which all employees need to be fully aware of and also why it is in operation, together with what the non-compliance could mean for the business.
Timico CTO Kevin Linsell provided some research in the December issue of Comms Dealer magazine which gave an insight into how many businesses are at risk from non-compliance.
“We know from our own financial clients that a large section of the workforce conduct business on mobiles, as teams are constantly travelling between markets and working remotely. It is essential companies get compliant systems in place. “
Fifteen Group offer a full range of integrated call performance management solutions, which provide measurement, data and transparency of activities in accordance with MiFID II.