<img src="https://certify.alexametrics.com/atrk.gif?account=b2hlr1ah9W20em" style="display:none" height="1" width="1" alt="">
    Login
    Get started

    Is your firm ready for MiFID's data retention rules?

    data retention rules

    As the implementation of  the Markets in Financial Instruments Directive (MiFID) II draws closer, businesses are under increasing pressure to take steps to ensure they're fully compliant.

    Last month, the US regulator, Securities and Exchange Commission (SEC), charged seven people with insider dealing after they allegedly used secure messaging apps to net $5m pofits trading inside information on mergers and acquisitions. According to the SEC, former Bank of America IT employee, Daniel Rivas, passed on tips to friends and family members over a 3-year period who used that inside information to trade.

    Just earlier this year, former investment banker, Christopher Niehaus, was fined £37,000 by the Financial WhatsApp icon data retention rulesConduct Authority (FCA) for disclosing confidential information on WhatsApp.

    The clock's ticking. Once MiFID II's data retention rules come into effect, we can expect a much tougher regime and tighter controls over electronic communications. Firms will have to comply with strict record keeping requirements, even capturing conversations, emails and instant messages.

    Are you ready?

     Check out these 5 steps to prepare for MiFid II data retention rules:
    1. Assess 'current state' and conduct Impact Assessments - What happens now? Is it fit for purpose? Are there existing Codes of Conduct? What rules are currently in place in respect of encrypted messaging apps and use of personal mobile phones? What of organisational culture? What other improvements could be made, if any?
    2. Gather evidence using objective criteria - To what extent do employees use electronic communications, personal mobiles, encrypted messaging apps etc in their dealings with clients? What about anecdotally?
    3. Check the tech - Conduct a cost-benefit analysis to determine whether it's feasible/desirable to use other tech platforms or innovations to capture records - eg VoxSmart, EikonMessenger, etc.
    4. Get the tone right - It's all about the culture and how you sell it. How are employees reacting to the news? If you're facing a backlash and Big Brother accusations, perhaps it's time to big up the positives - eg the benefits this offers in terms of dispute resolution and evidence at litigation?
    5. Archiving - What retention periods currently apply and should they be extended? Records must be kept for a minimum of 5 years (up to 7 years on request by a national competent authority) or the lifetime of the relationship. Can we deliver?

    Leave a comment

    Tick

    eBook: Essential Uncovered

    Skillcast Essentials is our best-selling library and there's a reason for that. Essentials library provides comprehensive coverage of the key compliance / conduct issues that companies in the UK face today.

    Request now

    How to use storytelling in compliance training for maximum impact

    Stories help us to connect with people and the world around us. They have the power to  engage us in a way simple narratives just can't. And we remember stories. I'll bet you still remember your ...

    Read More
    5 ways to fire up a culture of compliance

    Any company's biggest risk to attaining and maintaining full compliance with laws and regulations is the conduct of its people - we call this the people dimension of compliance. And against this ...

    Read More
    6 traits of effective compliance officers

    Protecting the ethical integrity of a company is the heart of the compliance officer’s role. And as regulators continue to clamp down on misconduct with higher fines, compliance officers are under ...

    Read More
    New infographic reveals a lack of transparency about political engagements

    Nearly three quarters of companies are failing to disclose how they engage with politicians, according to a new report by Transparency International UK. The 2018 Corporate Political Engagement Index ...

    Read More