Cloud Recording and Analytics for Service Providers in the MiFID II Era

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Cloud Recording and Analytics for Service Providers in the MiFID II Era

October 09, 2017

The full enactment of MiFID II on January 3, 2018 will heavily impact communications recording for any organization offering investment advice in the EU including banks and trading firms.

The provisions of the regulatory legislation include the recording of all communications with the potential to result in a transaction, and the retention of those recordings for at least five years. The recordings must be tamper-proof and documented on permanent media, and customers must be informed about the process and given access should they request it.

The Needs of Financial Institutions

To comply with MiFID II, financial institutions will require omni-channel recording – voice, email, chat and video – as transaction-related advice can be promulgated over any of these media.

The basic capabilities needed for full compliance with MiFID II will include communications recording with rapid search-and-retrieval and speech analytics with automated detection of trends, non-compliant calls or fraud. And compliance with MiFID II must be integrated with existing data protection regulations, increasing the complexity of the entire undertaking.

The Challenge for Service Providers

Service providers face additional challenges in offering the comprehensive communications recording required by MiFID II. Any solution must be scalable so both new tenants and resellers with additional services can be easily added without needing to revamp the core system. To do so requires an intelligent architecture with easy-to-use interfaces, APIs or configuration wizards.

Moreover, service providers must keep each tenant separate from the others for security and privacy. Each customer will need their own unique encryption key, and redundancy to ensure fail-safe operation must encompass separated data centers. On the other hand, to offer a streamlined experience, service providers must be able to white label the full system so it works as an integrated whole regardless of how many separate resellers are involved.

The Imperative of the Cloud

The need for speedy implementation, with full enactment of MiFID II looming just over the horizon, is facilitated by the special characteristics of the Cloud.

For customers, the Cloud avoids the need of integrating communications recording with their unique existing infrastructure. For service providers, the Cloud may be easily integrated into a multi-tier business network with a hierarchy of tenants and resellers.

The Cloud also lets service providers tailor their solutions to meet each customer’s special needs. For example, some customers may use one channel more than others or have current capabilities duplicated by the service provider’s offering. With the Cloud, each customer can choose only the services they really need. Moreover, the Cloud is future-proof, always updated with the latest software, so the customer avoids obsolescence.


Compliance with MiFID II is mandated for all financial institutions doing business in the EU as of January 3, 2018, and it will require comprehensive communications recording. Timely implementation to accomplish this is best met via the Cloud to ensure secure, fail-safe operations and thus avoid heavy fines. Moreover, service providers bring their own unique needs to the table including the management of a complex, scalable hierarchy of resellers and tenants. 

About the Author:  With more than 25 years of experience in the IT and telecommunications industries, Frank Steffan is currently the Vice President Sales EMEA, for ASC Technologies. As a sales specialist, he has held various positions in direct and indirect sales, and has focused on Cloud-based solutions.

ASC Technologies AG is a leading global provider of innovative solutions to record, analyze and evaluate multimedia-based communications. ASC’s solutions reveal vital information, enabling companies and organizations to considerably improve their value creation: contact centers enhance customer service, efficiently deploy staff and increase productivity. For more information, visit; call 917-475-9200; email; or write ASC Americas L.P., 69 Charlton Street, New York, NY 10014.

Edited by Mandi Nowitz

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