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ESMA makes one of the MiFID II hot spots flexible due to the coronavirus

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The European Financial Markets Supervisor (ESMA) It makes the application of MiFID II more flexible due to the coronavirus. Specifically, in what has to do with the record of telephone conversations, one of the most demanding points of European regulations when an investment product is sold.

ESMA acknowledges that, taking into account the exceptional circumstances created by the Covid-19 outbreak, “some scenarios may arise where, despite the steps taken by the company, the recording of relevant conversations required by MiFID II may not be practicable ”. Thus, "if companies, in these exceptional scenarios, cannot record voice communications, ESMA expects them to consider what alternative measures they could take to mitigate the risks related to the lack of recording."

Community supervisor admits that financial institutions can manage operational and technical difficulties regarding recording and recording of business conversations between a client and his commercial manager or banker and accepts alternatives to recording, how to incorporate contact notes in the entity's CRM (the software for customer relationship management), written minutes and other more manual solutions.

According to Enrique Fernández Albarracín, managing partner of Financial Regulation at EY, this is an “extraordinary context” for Covid-19 and, therefore, the European supervisor has not hesitated to do “adapted supervision”.

"Companies are expected to make every effort to ensure that the above measures remain temporary and that the recording of the telephone conversations is restored as soon as possible ”ESMA affirms.

. (tagsToTranslate) ESMA (t) relaxes (t) hot spots (t) (t) MiFID (t) coronavirus (t) Category: All (t) Category: Company News (t) Category: Funds (t) Category: Fundsnews (t) Category: Private Banking



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