MiFID II compliance: the essential confluence of regulation, compliance and artificial intelligence » Banking Technology

With the July 2017 publication of its MiFID II Policy Statement, the Financial Conduct Authority (FCA) has signaled the final countdown to the most sweeping changes of governance, protection and transparency for a generation. While MiFID II will fundamentally change the business models of many firms, especially those in the advisory sector, there are also significant new technology requirements that apply to all firms and which are causing some to have sleepless nights. One of these new technology decrees is a mandate to record telephone calls for anyone either directly involved in trading or giving advice that may lead up to a trade. The intent behind this is noble, which is to provide transparency against firms or individuals giving bad advice. However, the new regulations don't end simply with the need to record these calls, but go further to require that firms actively monitor their calls to identify mis-selling or other bad practices.