Over a third of financial firms are unsure whether they are Mifid II compliant, despite the deadline being less than a month away.
Research by managed cloud service provider Timico shows 39 per cent are in the dark about their situation, while a quarter have not implemented the necessary recording technology and 29 per cent are still working through the compliance process.
Only 8 per cent of respondents said their employees were up to speed on the legal implications of Mifid II and had received the necessary training,
despite the fact that companies can be fined up to €5m or 10 per cent of annual turnover for non-compliance.
The new Mifid II legislation dictates that all firms will be obliged to record all communications that may result in a transaction and be stored for five years.
The rules apply to personal devices brought into the workplace, which 35 per cent of respondents were unaware of and 42 per cent of businesses said that they do not have a mobile compliant platform in place to record calls.
Timico chief technology officer Kevin Linsell says: “With just under a month to go and Christmas holidays in between, it’s clear that many businesses are massively unprepared for Mifid II, despite having had the last 12 months to prepare for the impending legislation.
“It’s imperative that companies get ready and fast, with robust, compliant recording technology in place and employees fully trained and up to speed on the new requirements if companies are going to avoid potentially incurring huge financial penalties.”
He adds: “The fact that nearly half of UK financial organisations that we have surveyed currently have no mobile compliance platform in place is highly concerning. It is essential companies get compliant systems in place for not only mobiles, but across all communication platforms to ensure they meet the January deadline.”