The Financial Services Authority (FCA) already mandates that anyone directly involved in equity trading must record calls. However, MiFID II broadens the scope of individuals coming under its mandate – it’s not just the top city traders, it’s also financial advisers and commodity traders not previously regulated by the FCA.
Consequently, the population of workers in the financial sector that will have to record their calls will swell from 30,000 to 500,000, and these records must then be securely stored for a period of at least five years – up to seven years – depending on the local regulator. Companies have to prepare themselves for the colossal challenge of storing and managing potentially petabytes of extra data.
And this is without recording face-to-face meetings. Whilst MiFID II states that meetings can be recorded by note taking, surely it would be more compliant to record face-to-face meetings and have these stored together with call recordings. But this adds to the volume of data, and the challenge of data storage, analysis and management.