Many firms headquartered in Europe might already be implementing processes to comply with MiFID II across the board, but there are also direct and indirect obligations Australian firms should be thinking about right now.
Australian firms with branches or subsidiaries providing investment services in the EU will be directly subject to MiFID. But MiFID II obligations for these businesses are often indirect, arising by virtue of them dealing with European clients on a cross border basis through a locally-based entity.
The EU customers and investors of Australian institutions may have to meet certain requirements to comply with MiFID II. For a start, these EU customers and investors will most likely ask such Asia-based institutions to get a Legal Entity Identifier (LEI).
An EU subsidiary of an Australian institution is considered a European legal entity. And even a branch will be subject to MiFID when carrying out investment activities.
Telstra has launched with KNet commsrecording that enables australian firms to meet MiFID ii and Dodds Frank regulatory REQUIREMENTS. Commsrecording is a "in network" recording platform that enables Australian firms to record voice, mms, sms on mobile devices without the need for an application on the device. The same product can also do fixed services.
Commsrecording is a cloud solution that enables firms record and store in the cloud or move recording to their own REPOSITORIES. The cloud user portal has 2FA authentication.
Extract form MIFID II documents - article 16(7)
The records kept in accordance with this paragraph shall be provided to the client involved upon request and shall be kept for a period of five years and, where requested by the competent authority, for a period of up to seven years.
An investment firm shall not provide, by telephone, investment services and activities to clients who have not been notified in advance about the recording of their telephone communications or conversations, where such investment services and activities relate to the reception, transmission and execution of client orders.
Orders may be placed by clients through other channels, however such communications must be made in a durable medium such as mails, faxes, emails or documentation of client orders made at meetings. In particular, the content of relevant face-to-face conversations with a client may be recorded by using written minutes or notes. Such orders shall be considered equivalent to orders received by telephone.
An investment firm shall take all reasonable steps to prevent an employee or contractor from making, sending or receiving relevant telephone conversations and electronic communications on privately-owned equipment which the investment firm is unable to record or copy.
the deadline for implementation is 3rd January 2018. Companies have limited time to demonstrate implementation and compliance with the regulations.
Contact Telstra or KNet today and ask for commsrecording