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Advisers back Mifid II changes on client calls and independence

Firms say rules around call recording support what they do already


Advisers have welcomed some of the key Mifid II rules that impact them, including measures to record telephone calls with clients and a change to the definition of independent advice.

Earlier this week the FCA published its policy statement setting out the final rules for the implementation of Mifid II.

The regulator stuck to its position that advisers must either tape telephone calls with clients or keep an “analogous” written note where the conversation relates to the “reception, transmission and execution of orders, or dealing on own account”.

The information advisers are required to record as a minimum is the date, time and location of the meeting, the identity of the attendees, the initiator of the meeting, and relevant information about the client order including price, volume, type of order and when it would transmitted or executed.

Investment Quorum chief executive Lee Robertson says his firm can already record calls on landlines and mobiles.

Phil Young: 10 things you need to know about Mifid II

He adds: “We have always made notes into our back office system of telephone calls because it just makes sense. So if Mifid II just codified how we make those notes as well as call recording then that is what we will do.”

Thameside Financial Planning director Tom Kean also already records calls.

Kean says recording is a quality measure and also allows advisers to go back and check what was said.

The policy statement says good practice for firms would include sharing the notes from relevant phone conversations with clients on a regular basis in order to ensure their accuracy.

The definition of independent advice will also changed under Mifid II. The requirement to carry out a “comprehensive analysis” of the market will be replaced by a requirement to undertake a review that is “sufficiently diverse”.

The Ideas Lab director Robert Reid says: “A direct result of that requirement was that advisers were having to study everything, even if they were not using it, to retain a competence as being independent.”


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