Only 60 per cent of employees in financial services firms have suitable processes and technology in place to capture, record and consequently retrieve real-time business communications, meaning 40 per cent are risking non-compliance with Article 16 of MiFID II.

The second Markets in Financial Instruments Directive comes at a time when many firms have been concentrating on compliance with the new General Data Protection Regulation (GDPR), which requires significant change to operations, staffing and technology. 

Firms that don’t comply with MiFID II risk fines of up to €5 million, or 10 per cent of their annual turnover.

TeleWare commissioned 3Gem Research & Insights to survey of 2,000 employees from all industries, age groups and regions, finding that employees agreed that if they could record and recall information more effectively, this would benefit the business through:

• Improved customer experience (58 per cent).
• Better customer service (55 per cent).
• Improved employee productivity (54 per cent).
• Increased collaboration across the business (36 per cent).

Steve Haworth, chief executive of TeleWare, commented: “Financial services firms have been dealt a tricky hand in 2018, with MiFID II and GDPR coming into force just months apart – and with some contradictory requirements when it comes to the recording of personal data.

“As the threat of non-compliance is so high, it’s critical that firms make the necessary investments in technology and infrastructure,” he continued. “Our research has shown that firms that do so will reap significant benefits in return, in addition to mitigating the compliance risks.”

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