Businesses are unaware of the impact Mifid II will have on recordkeeping obligations, according to a whitepaper authored by archive solutions firm Smarsh.
The whitepaper explores Mifid II rules on voice and electronic communications recordkeeping requirements.
It claims buy- and sell-side will be impacted in varying ways, and firms would be “best placed to take immediate and definitive measures to prepare and install a responsive compliance program.”
Mifid II rules on recordkeeping require firms to keep all records of transactions, services and activities, including telephone conversations and electronic communications.
James Thompson, director at Smarsh, said: “Businesses are more than familiar with MiFID II and how it will affect their trading activity. But few are aware of how the new regime is going to impact their general recordkeeping obligations.”
With Mifid II coming into effect on 3 January 2018, regulators will look for formal examination, which firms should be aware of, the whitepaper says.
Smarsh suggests businesses implement a single, comprehensive archiving solution to satisfy the scope of requirements.
Thompson concluded: “The sheer scale of the new legislation, and its associated regulations, represents a huge challenge for businesses.
“Some of the requirements are still a ‘work in progress’ but for those aspects that have been finalised, it’s worth addressing them sooner rather than later.”