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Covid-19: MiFID II call recording rules relaxed

Covid-19: MiFID II call recording rules relaxed

With Covid-19 forcing huge numbers of people to work from home, European authorities are relaxing MiFID II rules on the recording of telephone conversations.

Under MiFID II, credit institutions and investment firms are required to record phone conversations relating to transactions concluded when dealing on own account and those involving the provision of some client order services.

However, the European Securities and Markets Authority recognises that Covid-19 means that there are likely to be circumstances where large chunks of staff are suddenly required to work remotely or clients do not have electronic communications tools.

Therefore, the watchdog says firms should look at alternative steps, such as the use of written minutes of client calls, with enhanced monitoring and ex-post review of orders and transactions.

In the UK, the FCA has also given guidance to firms that may have to close call centres because of a Covid-19 outbreak, resulting in staff working from home.

An affected firm "should establish appropriate systems and controls to ensure it maintains appropriate records. Our rules are not specific in respect of call recording in such situations," it says.

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