In the near 500 pages that the European Parliament uses to describe the new regulatory regime under MiFID II, fund managers could be forgiven for overlooking Article 57, a short section that covers the increased need for firms to have their business telephone calls recorded.

Many firms will already record calls, since from 2011 the FCA has required that UK trading firms record landline and mobile calls. However, under MiFID II, the scope and scale of this requirement is going to increase significantly, to the extent that it will for many require a fundamental rethink of a firm’s overall call recording strategy.

Firms will overlook this at their peril. Regulators have shown themselves to be very unforgiving when it comes to a compliance oversight.

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