Fri, Mar 20, 2020

ESMA Statement: Telephone Recording During COVID-19 Outbreak

ESMA has issued a Public Statement acknowledging the challenges that the continuing COVID-19 outbreak is creating for society, economies and financial firms and clarifying their expectations, in light of these challenges, of firms who are required, under MiFID II, to record telephone conversations.

There will be some exceptional scenarios where, despite steps taken by firms, it is not practicable to record relevant telephone conversations. Where this is the case ESMA expects firms to consider what alternative measures could be employed to mitigate the risks associated with not recording, which may include written minutes of the calls and enhanced monitoring, and ex-post, reviews of relevant orders and transactions.

However, ESMA expects these alternative measures should be temporary and that firms deploy all efforts to restore telephone recording as soon as possible.

The full public statement can be found here.

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