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Telephone recording according to the FinVermV directives!
MIFID II AND FINVERMV-COMPLIANT TELEPHONE RECORDING
The MiFID-Recorder is a simple, affordable and certified solution for recording telephone conversations in accordance with the financial market directive MiFID II. Therefore, banks, liability umbrellas and asset managers with BaFin licence according to Section 32 of the Banking Act (KWG) and according to the most updated FinVermV, in short 34f agents with approval according to Section 34 of the German Industrial Code, are obligated to record consults conducted via telephone or video, as well as the connected electronic communication, and to store this in a tamper-proof manner.
Do you advise your customers via telephone? The MiFID-Recorder allows you to record and store telephone conversations in a legally secure manner.
It doesn’t matter whether you are calling from the landline or from your mobile, the MiFID-Recorder is available to you everywhere and at any time.
Do you carry out your consults via video conferencing? With our own video conference module, the MiFID-Recorder is capable of recording video conferences in a legally compliant and tamper-proof manner.
The video recordings are compressed automatically and stored securely according to MiFID II and FinVermV.
STORAGE OF ELECTRONIC COMMUNICATION
As well as advice via telephone, does your consulting process also involve email communication or documents?
Use the module for the tamper-proof storage of data in order to store all relevant components of our customer communication in connection with an audio or video file.
HOW DOES THE MIFID-RECORDER WORK?
During the recording process, the customer can select the right recording version for their purpose. To activate the recording, it is always sufficient to dial the provided MiFID-Recorder number with an approved end device. Alternatively, PIN numbers can be issued to permit an even more independent and flexible way of working.
Spontaneous need for recording
The consultant telephones the customer and establishes that there is a need for recording. The consultant activates the MiFID-Recorder via the “three-person conference” and the recording begins.
General / selective recording for outgoing calls
The consultant already knows in advance that the whole telephone discussion should be recorded and calls the customer directly via the MiFID-Recorder call-in number.
Or the consultant would like only part of the telephone discussion to be recorded and can activate and deactivate the recording during the conversation using the # key.
General recording for incoming calls
The consultant communicates a telephone number to their customers where all incoming calls are generally forwarded to the MiFID-Recorder and recorded directly.
Recording via MiFID-Recorder app
The consultant can grant the app access to smartphone address book contacts, which means that recording-relevant consults can be initiated and managed as easily as a normal telephone call.
MIFID II AND FINVERMV RECORDING OBLIGATION
The MiFID II directive represents the regulatory framework for investment service providers in Europe and influences the way of working of European financial markets. The recording of telephone discussions (so-called “taping”) is just one of many requirements of MiFID II. The aim of telephone recording is to increase security on the market, create transparency and offer investors more comprehensive protection. Since the European financial market directive MiFID II came into force on 3 January 2018, banks, liability umbrellas and asset managers have been obligated with an approval according to Section 32 of the Banking act (KWG) to record telephone consulting discussions.
On 20 September 2019, the Ordinance on Mediating Financial Investments (FinVermV) was passed by the Bundesrat and now also obligates agents with an approval according to Section 34f of the German Industrial Code (so-called “34f agents”) to record and store their telephone consulting discussions in a legally compliant manner. The legislator grants the branches a transition period of ten months to implement the requirements. MiFID II and FinVermV-compliant telephone recording must meet the following requirements, among others:
- “On demand” or “automatic” recording
- Storage for 5 years according to MiFID II (at least 10 years according to FinVermV)
- Tamper-proof data storage
- Protection from manipulation of the recordings
- Traceability of changes made after the fact, also with security measures take
- Easy to search for and effortlessly allocate recordings from the business premises of the agent
- Short-term provisions of recordings for customers and authorities on request
LEGAL AND ADMINISTRATIVE FRAMEWORK
CONFIRMATION OF MIFID II AND FINVERMV COMPLIANCE
We have contracted a renowned auditing company which is specialised in the financial sector to check the MiFID-Recorder and, in this context, all processes, the hardware used as well as the contract with regard to MiFID II and FinVermV compliance. This independent audit report is an important building block of the solution, and the basis for a problem-free approval of the solution by all responsible bodies of an organisation.
When using the taping service with the MiFID-Recorder, this is so-called essential outsourcing according to ESMA. For this reason, information and audit rights of authorities, among other things, must be contractually regulated in relation to the service provider company. The contract arrangement of the MiFID-Recorder is directed at the EBA guidelines on outsourcing and creates the basis for the efficient controlling of outsourcing.