Financial Compliance: The 4 R’s

by Maggie Lehmann

Thanks to growing industry regulations and internal rules, organizations in the financial markets are required to RECORD, RETAIN, and upon request, RETRIEVE and REPLAY all trade-related communications.

Whether the recorded communications are needed for trade reconstruction, audit request fulfillment, or dispute resolution, financial service organizations have no choice but to ensure that Compliance Recording solutions can meet all of these objectives.

Record: The following communication channels must be recorded:

  • Phones on the trading floor and in the back office
  • Trading turrets/dealerboards
  • Cell phones and other mobile devices
  • Skype for Business chat, IM, video, and VoIP calls
  • Email interactions
  • Video communications, including video conference calls

Retain: Recorded data must be retained according to retention limits set by regulatory bodies, internal standards, best practices, and local/state/federal/international laws.

  • Dodd-Frank Act: Records must be kept throughout the duration of the transaction, and then retained for up to five years.
  • MiFID II: Records must be retained and stored securely for a minimum of five years.

Retrieve: Once records are captured and archived, they need to be easily retrievable if requested. Unified Communication Recording platforms, Centralized Recordings, and Legacy Voice Management solutions are all available to help simplify the retrieval process.

  • Dodd-Frank Act: Within the first two years, records must be readily accessible.
  • MiFID II: Records must available for easy access for a minimum of five years.

Replay: Recorded audio data must be of sufficient quality so as to be easily understood when replayed. Having an Automatic Testing and Monitoring program in place during the recording phase of this cycle can help ensure high quality audio.

Wilmac is here to help ensure your organization remains compliant. Contact us today to learn more.

Financial Services General