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What IT Directors and Professionals Need to Know About MiFID II and Call Recording

Jonathan Sharp

*Updated 10 March 2025* 

Staying compliant with regulatory frameworks remains a top priority for financial services firms. As regulations become more stringent, IT professionals must ensure that business communications and IT infrastructures align with the latest compliance requirements. MiFID II (Markets in Financial Instruments Directive II) is no exception—especially when it comes to call recording and data retention. 

MiFID II mandates that firms record all voice and electronic communications that could lead—or do lead—to a transaction. Even if you have an existing call recording system, you must now reassess your technology to ensure compliance with the latest regulatory expectations. 

 

Technology Review - Are You Still Compliant? 

With continuous updates from financial regulators such as the European Securities and Markets Authority (ESMA) and the Financial Conduct Authority (FCA), firms must conduct regular audits of their call recording solutions. 

As of 2025, key updates include: 

  • Stricter Data Retention Rules - While MiFID II initially required call data retention for five years (with some cases extending to seven years), new guidelines emphasize enhanced security and accessibility of archived communications. 
  • Expanded Communication Coverage - The regulatory scope has broadened to include a wider range of digital communication tools such as WhatsApp, Microsoft Teams, and AI-powered chatbots. 
  • AI-Powered Compliance Monitoring - Regulated firms are expected to implement AI-driven analytics to detect anomalies, flag compliance risks, and support trade reconstruction requests in real time. 

 

The 4 R’s of MiFID II Compliance: Record, Retain, Reconstruct, Resilience 

To achieve full compliance, your call recording solution must address the following critical areas: 

  1. Recording Quality - Ensuring high-quality audio for all recorded trade-related conversations is crucial. AI-driven quality checks should detect inaudible sections, distortions, and anomalies. Recordings must be tamper-proof and stored in a secure, encrypted format. Solutions must support all modern communication channels, including mobile, VoIP, video calls, and chat.
  2. Data Retention & Secure Storage - Data must be stored for at least five years, with some jurisdictions extending this to ten years. Secure storage solutions must prevent unauthorised modifications or deletions. Implementing a cloud-based or hybrid storage solution can help manage scalability and compliance needs. Instant retrieval of data should be ensured when requested by regulators.
  3. Event Reconstruction & AI-driven Analytics - Regulatory authorities demand the ability to reconstruct conversations leading to transactions within 72 hours. Advanced analytics, powered by AI, can help extract meaningful insights from stored data. Automated compliance dashboards should provide real-time monitoring and alerts for potential breaches.
  4. Resilience & Failover Strategies - A failover system should be in place to ensure uninterrupted call recording in the event of system failures. Backup solutions must prevent data loss due to cyberattacks or hardware failures. Regular penetration testing and security audits should be conducted to protect stored data from cyber threats.

 

Navigating Compliance Challenges with a Technology Partner 

Ensuring MiFID II compliance is not just a legal necessity—it is also an opportunity to strengthen security and operational efficiency. However, many firms struggle with integrating call recording solutions into their Unified Communications (UC) and mobile strategies. 

A technology partner that specialises in compliance-focused solutions can help: 

  • Assess your compliance gaps through a comprehensive audit. 
  • Implement AI-driven monitoring tools to detect regulatory risks. 
  • Optimise data retention policies for secure and cost-effective storage. 
  • Ensure seamless system integration across all communication platforms. 

At Britannic, we collaborate with industry leaders like Uniphore to provide MiFID II-compliant call recording solutions that offer advanced analytics, AI-powered monitoring, and seamless multi-platform integration. 

 

Beyond Compliance - Unlocking Business Value 

While meeting MiFID II requirements is essential, firms can leverage call recording for strategic advantage: 

  • Big Data & AI Insights - Analysing recorded conversations can improve customer service and detect market trends. 
  • Fraud Prevention - AI-driven compliance solutions can help identify fraudulent activities before they escalate. 
  • Improved Customer Experience - Voice analytics can uncover sentiment trends, enabling proactive engagement with clients. 

If you would like to speak to one of our specialists about Call Recording, get in touch.