MiFID II legislation explained


Markets in Financial Instruments Directive II published on 3 July 2017 is made law across the EU on 3 January 2018.


It requires firms to record all landline, mobile, email, text, instant messaging, videoconference and VoIP sales discussions, then encrypt them, make them searchable and store them for a minimum of five years.


Details can be read in Chapter 19 "Taping" (pp. 120-140) of the policy document to the right, which you may download.


MiFID II is in effect for advisors working in the Equity, Bond, Derivatives and Mortgage markets; Retail Financial Advisors; Corporate finance firms involved in providing advice, strategy, underwriting debt, restructuring, takeovers and acquisitions; Portfolio managers; Discretionary investment managers; plus participants in Energy, Oil, Commodity and exotic derivatives.


It affects any communication that could influence a client's decision to buy or invest, where there is a reasonable prospect of a transaction being agreed (this happens all through the selling process), and where the actual commitment of a transaction is received (this happens when 'closing the sale').


MiFID II deems it acceptable for firms to keep written records as an alternative to recordings, however these must strictly adhere in each instance to standards that satisfy consumer protection laws. It is noted that call recordings (even of face-to-face conversations) release advisors from this administrative burden, so they can focus on the client rather than on note-taking, This makes them more client-centric as an advisor.

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MiFID II Compliance with ROCKET™ MiFID II Compliance with ROCKET™

Technical compliance


Our original ROCKET™ architecture provides recording, encryption and  storage of landline and face-to-face sales conversations for five years. All recordings are time stamped and saved with agent, client, account and opportunity identifiers for easy search and retrieval.


We are a full services consultancy capable of auditing your current level of compliance, issuing you a report with recommendations, and then managing the technical systems integration with your IT team as well as the important change management and training of your staff using our own consultants and coaches, or in concert with yours.


Our core functionality can be extended to capture, analyse and store client communications made via email, SMS, chat, VoIP and mobile devices through select partnerships with telecommunications, SI and speech analytics experts so you can search across a unified view of all communications, extract each instance of non-compliance and see historical trends by person, location or product.

Skills compliance


After deploying an MiFID II solution at the technical level, let's say you see an agent's approach doesn't meet the standard. How do you respond?


Most firms treat the situation as a knowledge gap. They deploy refresher training to show action was taken to correct the shortfall. This is appropriate. But is it effective?


SalesLabs research on more than a million minutes of client sales conversations plus independent studies by The Royal Society concur this type of training is not how adults learn today. Similar to students cramming before an exam, it's a learning technique called 'massing'.


So although seminars, mobile text quizzes and eLearning can offer good content, they create a 'cognitive illusion' in that they track content delivery and short-term memory in a controlled environment, not skills reflex in front of the client. This is why 64% of what's taught can be forgotten in just six hours, and your compliance can remain at risk.


Integrated. Seamless. Effective.


Our solution goes beyond recording and analysis to include the ROCKET™ CoachingCloud™ —an advanced technology that uses recordings of telephone and face-to-face conversations to measure each agent's SalesDNA™ against best practices. ROCKET™ then delivers a drip-feed approach to improving skill and knowledge until they become a permanent habit.


If your MiFID II solution is more about technology than behaviour change, ROCKET™ is an essential element to reduce repeat occurrences and improve the commercial acumen and skills of your financial product & services sales force.

MiFID II Compliance with ROCKET™

Our unique client/employee-centric approach is modern, ethical and produces lasting results. It drives down the risk and cost of compliance, while lifting your agents' commercial acumen and business development skills in a manner that is research-based, measurable and scalable. No MiFID II compliance solution can truly solve the root cause if it focuses only on recording and storage. Our solution adds a coaching element to bridge deficits in legislative and procedural knowledge, and to sharpen the commercial skills needed to pursue, acquire, retain and grow client business.  ROCKET™ is the only MiFID II compliance solution to do it all.


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