COVID-19: ESMA issues statement on MiFID requirement on recording of telephone conversations

MIFID II imposes a number of recording-keeping obligations on investment firms. Amongst others, investment firms are required to record telephone conversations relating to, at least, transactions concluded when dealing on own account and the provision of client order services that relate to the reception, transmission and execution of orders.

ESMA acknowledges that the COVID-19 outbreak and its global spread has created significant and immediate challenges to societies, economies and to financial institutions, and has consequently issued a public statement to clarify issues relating to the recording of telephone conversations by investment firms and credit institutions. ESMA has clarified that, should firms be unable to record voice communications in view of such exceptional scenarios, firms are expected to consider alternative steps to mitigate the risks related to the lack of recording. By way of example, firms may make use of written minutes or notes of telephone conversations when providing services to clients. Such arrangements should be appropriately notified to clients, including notification of inability to record the call and that written minutes or notes of the call will be taken instead. In these scenarios, firms should also ensure enhanced monitoring and ex-post review of relevant orders and transactions.

For further information, please contact DF’s financial services team at dfcs@dfadvocates.com .

Photo: Esma


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