Call Monitoring Program – Essential Elements For Effective Compliance

Financial firms must comply with various data retention and regulations to ensure that their customers’ data are safe and secure and that they are discoverable in case an investigation is required. These regulations will require firms to record and monitor calls, so getting a robust mobile call monitoring solution is necessary to comply with regulations.

One regulator is the FCA or the Financial Conduct Authority, which requires firms to have internal controls. The firm must ensure that they can monitor their employees’ phone calls so that the compliance officer can identify whether the advisors’ behavior when speaking with customers is compliant with FCA’s standards.

One call monitoring legislation to comply with is the Markets in Financial Instruments Directive II. Under MiFID II, firms must record telephone conversations and electronic communications. This includes the following:

  • Mobile calls
  • Text messages
  • WhatsApp chats
  • WeChat chats
  • Other communications data

The FCA and MiFID II are only two of many more regulators, legislations, and data retention requirements to comply with. Firms must also keep in mind any local laws and global regulations that may be relevant to a firm or organization.

To comply with different relevant regulations, firms must be able to identify high-risk traders and monitor them. Some of these traders are investigated for spoofing and manipulative trading, so it’s important that firms can monitor them. Holistic surveillance will allow firms to collect the following data:

  • Trading data and pattern
  • Trade-related communication
  • Information circulated in the market during the period in question
  • Trading-related social media information
  • Behavioral data of traders

The firm must also be able to develop lexicons for high-volume voice call-based trades, proactively monitor calls through real-time speech analytics, and upgrade legacy recording systems. Using a robust and modern call monitoring solution should be enough to meet these requirements and comply with relevant regulations.

Once financial firms know the essential elements of effective compliance and actively pursue compliance through a robust archiver, they won’t have problems with non-compliance. For more information, see TeleMessage’s infographic on effective compliance.