Artificial Intelligence, Financial Services
MiFID II: Why Recording Customer Communication Is Essential
![[Translate to Englisch:] Finanzberater im Gespräch mit Kunden nutzt Recording Insights zur MiFID II-konformen Aufzeichnung](/fileadmin/_processed_/4/c/csm_Business_Consulting_Financial_Services_4ffa7a53dc.webp "[Translate to Englisch:] MiFID II-konformes Call Recording mit Recording Insights")
Financial institutions are required to record and securely store customer communication to comply with MiFID II regulations. However, merely recording conversations is not enough—the real challenge lies in efficiently analyzing these interactions to detect violations early and mitigate regulatory risks.
Our previous blog post, “MiFID II: What Financial Service Providers Need to Know About Call Recording”, explains the technical requirements for call recording under MiFID II. In this article, we take it a step further: How can financial institutions automate compliance checks on recorded conversations?
With AI-powered AI Policy Templates in Recording Insights, financial institutions can optimize compliance monitoring in real-time, significantly reducing manual review efforts.
What Conversations Must Be Recorded?
MiFID II requires financial institutions to record and securely archive the following communications:
- Investment advisory conversations related to securities and financial products
- Trade-related discussions that result in a transaction
- Communications about order modifications or cancellations
- Internal conversations within investment firms relevant to advisory processes
These recordings must be stored for at least five years and remain unaltered and tamper-proof, while being readily available to regulators upon request.
The Challenge: Compliance Checks at Scale
Financial institutions handle thousands of conversations daily, making manual compliance checks impractical—too time-consuming, too error-prone. AI-powered compliance solutions help automate these processes, ensuring efficiency and regulatory compliance.
AI Policy Templates: Automating Compliance Monitoring
Ensuring MiFID II compliance requires continuous monitoring of recorded customer conversations. Manual audits are no longer viable — too many conversations, too many regulations, too little time. With AI Policy Templates in Recording Insights, recorded conversations can be analyzed automatically so that potential violations can be detected at an early stage and regulatory requirements can be met efficiently.
How Do AI Policy Templates Work?
With AI Policy Templates in Recording Insights, financial institutions can automatically analyze recorded conversations, enabling that potential violations are detected early and compliance requirements are met efficiently.
![[Translate to Englisch:] Laptop mit Recording Insights Oberfläche zeigt MiFID II-relevante Policy-Hits in einem Kundengespräch](/fileadmin/_processed_/e/7/csm_Praesentationen_1920x1080_Laptop_Compliance_Alerts_9bc86fee8f.png "[Translate to Englisch:] MiFID II Policy-Erkennung in Recording Insights")
Step 1: Analyzing Conversation Content
AI-powered AI Questions verify compliance with key regulations, such as:
- Was the customer informed that the conversation was being recorded?
- Were risks and fees clearly explained?
- Did the advisor assess the customer’s financial suitability?
Step 2: Automatic Rule Evaluation
Multiple AI Questions are grouped into a rule representing a key MiFID II compliance requirement. If any question fails, the system flags a potential violation
Step 3: Policy Detection & Compliance Dashboard
All detected violations are logged as Policy Hits in Recording Insights, with compliance teams receiving instant notifications to review flagged conversations.
Real-Time Monitoring and Dashboards for Compliance Managers
Manual compliance checks often provide only a fragmented view of regulatory risks. AI Policy Templates enable automated, real-time monitoring, ensuring that violations are detected promptly and reviewed efficiently.
Comprehensive Compliance Monitoring at a Glance
Automatic Identification of Rule Violations
The system marks potentially non-compliant conversation elements as Policy Hits, allowing compliance teams to act immediately.
Intuitive Dashboards for Informed Decision-Making
- Violations categorized by type and severity
- A clear breakdown of affected conversations and associated rules
- Trend analysis for strategic compliance management
Seamless Documentation for Audits
All detected violations can be exported in just a few clicks for internal audits or regulatory reviews.
Enhancing Compliance Overview with AI
MiFID II regulations are constantly evolving, increasing compliance demands on financial institutions. Modern AI-driven solutions streamline compliance processes, detect risks early, and ensure regulatory security.
Leverage automated compliance monitoring with AI to stay ahead—ensuring future-proof, transparent, and fully compliant customer communication.
