2018 set to be the year of compliance?
With the EC’s MiFID II Markets in Financial Instruments regime coming into effect last week, it’s clear that 2018 is set to be a year characterised by regulatory change and compliance efforts.
The latest MiFID directive clearly states that firms operating in the financial services sector should not only record interactions with customers, but also ensure the quality, accuracy and completeness of phone recordings and electronic communications records. Organisations now need to not only record interactions where a sale/order is made, but also all the conversations leading up to that interaction. The regulation also places a requirement to proactively contact the FCA (Financial Conduct Authority) if they know or think that any of their recordings have failed.
This places increased pressure not just on resilient call recording technologies, but also the compliance processes associated with them. It’s simply not possible for customer contact operations to manually check the validity of each recording, so there’s a pressing requirement for a next generation assurance solution – such as Sabio’s innovative Recording Assurance as a Service (RAaaS) platform that can analyse events from multiple applications to highlight recording failures and associated issues.
This year also sees the introduction of PSD2 – the European Commission’s Second Payment Services Directive, the UK Treasury’s Open Data Initiative, and the Competition and Markets Authority’s Open Banking initiative that ordered the nine biggest UK banks to allow licensed startups direct access to their data. And of course May 2018 also sees General Data Protection Regulation (GDPR) rules coming into play that will significantly impact how customer-facing businesses process and handle their customer data.
While organisations adjust to accommodate these regulatory and compliance requirements, 2018 will also see their customers becoming much more aware of how the businesses and social media platforms they engage with capture and use their data. How do you think your customers will react?
In this week’s SabioSense we focus on how GDPR is set to accelerate the trust agenda, look at how Open Banking and PSD2 regulations could see a fundamental realignment in banking, and highlight how MiFID II compliance requirements could crowd out PSD2 and GDPR efforts.
- GDPR to place trust at the top of the customer engagement agenda? – With its integral ‘right to be forgotten’ GDPR gives customers the right to completely disengage from organisations that don’t handle their data correctly.
- Open Banking Initiative set to streamline payments – Wired magazine suggests that 2018 may see a fundamental realignment as tech giants develop services to take advantage of open bank account data
- MiFID II – biggest shake-up in financial regulation for a decade? – Finextra argues that uncertainties about the eventual compliance costs of MiFID II are likely to impact ongoing PSD2 and GDPR activities.
- GDPR Compliance – not just a European issue – Digitalist Magazine sets out how even companies without a physical presence in the EU will feel the effect of GDPR – indeed PwC points out that 77% of US multinationals are actively investing in GDPR readiness and compliance efforts.
