Read Part 1 to learn how:
- The impact of FOIA on your government organization
- Being underprepared to respond to a FOIA request puts your agency at risk
- Manual processes can be reduced to increase efficiency and lower risk
Read Part 1 to learn how:
Global market participants are racing to meet the 2018 deadline for Financial Instruments Directive (MiFID II). Beyond Europe, the market reforms are hitting home for U.S. financial markets, vendors, and financial services firms, which are overhauling operations and IT infrastructures.
Marianna Shafir—Smarsh Corporate Counsel and Regulatory Advisor—will participate in a panel during the Navigating the Maze of MiFID II conference in New York City. The conference focuses on the major impacts of MiFID II upon pre-trade data gathering, investor protections, post-trade reporting, settlement, and best execution—among other areas.
“MiFID II impacts the use of electronic communications and firms must retain records, including recordings of phone conversations, on fixed line or mobile devices, and all electronic communications, including email, social media, instant messaging, and SMS/text messaging,” said Shafir.
“Depending on the business and the country, some firms will need to make more substantial changes than others. However, even in the most heavily regulated countries, the MiFID II requirements on recording order-related communications and associated record-keeping bring the need for new procedures and policies.”
Shafir’s panel, MiFID II and Electronic Communications Records, takes a deep dive into the requirements—which covers voice communication via text, instant messaging, email, mobile, and social media interactions—for the recording of electronic communications that facilitate transactions.
“The conference provides the opportunity to discuss the sweeping changes that will transform global securities trading, and I look forward to providing insight that will help attendees ascertain the scope of the management problem for this requirement, and what organizations can do to achieve compliance,” Shafir continued.
The Navigating the Maze of MiFID II conference—presented by the Financial Technologies Forum—is Monday, September 18, 2017 at the Andaz Wall Street in New York City. Conference attendees have the opportunity to immerse themselves in the complexities of the new regulations and gather useful insights from subject-matter experts and peers. The MiFID II and Electronic Communications Records panel, which features Shafir, begins at 1:30 pm, EST. Follow the conversation on Twitter with the hashtag #FTFMiFID and at @FTFnews.
|In this article, originally published by CCI, Mike offers pointers—such as documenting employee training, and implementing processes to remediate FINRA or SEC compliance violations—financial services firms can use to achieve reliable detection and appropriate remediation.
Download the full article here.
The need for financial services firms to automate the retention of all digital messages is no longer a want, but a need. Without a comprehensive, automated system and self-documenting procedures in place, your organization could be found noncompliant when regulators come knocking.
Due to the growing volume of digital tools and communications generated by businesses, including emails, social media posts, websites, instant messaging, text messaging, and voice services, falling out of FINRA or SEC compliance is an absolute reality—unless you have the right systems and policies in place.
One thing we know is that financial regulators are not seeking perfect compliance processes and systems for the supervision of all electronic communications. People are only human, after all. However, FINRA and SEC regulators do expect firms to have policies in place, and to demonstrate formal strategies for supervision.
Capturing all of your organization’s digital communications in a comprehensive archiving platform is a huge step in avoiding fines for noncompliance, but auditing communications for adherence to policies has traditionally placed a major burden on FINRA or SEC regulated firms. Automating the supervision process saves time and company resources, and removes much of the risk for human error.
Mike Pagani, Smarsh Chief Evangelist and Senior Director of Product Marketing, is a regular contributor to Corporate Compliance Insights (CCI). In this article, originally published by CCI, Mike offers pointers—such as documenting employee training, and implementing processes to remediate FINRA or SEC compliance violations—financial services firms can use to achieve reliable detection and appropriate remediation.
Read Mike’s pointers for compliance strategy and execution here.
Voice archiving is critical to MiFID II compliance
On 3 January 2018, Europe will see MiFID II and MiFIR come into place. With core principles focused on fairer, safer and more efficient markets, this is a significant piece of legislation. The MiFID II directive impacts financial services firms that operate and/or do business with European firms providing investment services in the European Economic Area, so the implications are global.
While most financial firms in the European Union (and those outside the region that do business with the EU) are aware of MiFID II and know it will impact them from a trading governance perspective, many don’t understand how the expanded rules will affect their recordkeeping requirements. Also, record collection and discovery of this magnitude is beyond the current capacity of many firms.
The requirements for recordkeeping under MiFID II are certain and extensive. Financial firms must prepare for the new rules now, to avoid running out of time before MiFID II is in place.
Financial firms will be required to have systems and processes to capture, retain and reproduce complete records of all services, activities and transactions on firm and client accounts. This includes all telephone calls and voice messages on fixed lines and mobile devices, and all forms of electronic communications including email, SMS/text messaging and instant messaging. All records must be discoverable, even if they don’t lead to a transaction.
Key MiFID II Recordkeeping Requirements that will Impact Voice and Electronic communications
A fundamental operating requirement of MiFID II in relation to recordkeeping is laid out in Article 16 of MiFID II regulations:
“An investment firm shall arrange for records to be kept of all services, activities, and transactions undertaken by it, which shall be sufficient to enable the competent authority to fulfill its supervisory tasks, perform enforcement action, and ascertain that firms have complied with all obligations to clients, potential clients, and the integrity of the market.”
MiFID II requires financial firms to:
It’s Time to Prepare for MiFID II NOW
Smarsh is now the only archiving provider directly capturing mobile voice content directly from the carriers, following the company’s acquisition of London-based Cognia. Cognia is a recognized pioneer in voice archiving, audio search, and analytics, and the pairing of these capabilities with The Archiving Platform from Smarsh gives businesses the most comprehensive solution that handles voice and audio with all other types of electronic communications in one place.
For financial firms in the European Union that have MiFID II recordkeeping and supervision requirements, Cognia’s cloud-based voice archiving tools, combined with The Archiving Platform from Smarsh, provide the secure capture of incoming and outgoing voice/audio communication from fixed-lines, as well as from leading mobile carriers.
Carrier direct capture is the most reliable and automated method to capture content for archival, and it’s easily deployed without the need for additional device software. Smarsh clients can quickly and securely search, analyse, monitor and produce voice and audio content alongside all other electronic information content such as email, social media, and text messages. Audio content can be found using phonetic search capabilities and cutting-edge transcription technology, and conversations can be reconstructed in their proper context across different communications channels. As a result, firms can meet MiFID II requirements without the hassle of searching through separate archives.
Smarsh enables the entire workflow needed to capture, retain, supervise and produce all the electronic communications records required by MiFID II and MiFIR, from voice to email and social media, and much more.
Prior to fully embracing SMS/text messaging, organizations need to assess how and why their employees want to use text communications, develop and communicate use policies, and ensure all information sent via text can be retained and archived. Remember, any communication sent or received by government organizations—including public safety departments and their employees—is subject to open records requests.
In this report, we examine how public safety agencies can create policies that allow for compliant use of SMS/text messaging, and how to retain and archive those communications for a more efficient response to open records requests.