Mobile Voice Recording: A Compliant, Secure, and Flexible Solution
Mobile Recording: A Compliant, Secure, and Flexible Solution
The European MiFID II directive on financial instrument markets, which strengthens transparency and client protection like never before, is set to bring major changes for all players in the financial sector. Among other requirements, the directive mandates that financial institutions retain records of mobile communications with their clients.
MiFID II, which comes into effect on January 3, goes further than the previous MiFID I regulation. The new directive requires professionals involved in financial services or advice that may lead to a transaction to record their conversations—including mobile calls—and securely store these recordings. All communications must be retained, even if no transaction occurs.
Furthermore, the scope of covered instruments is significantly expanded, encompassing nearly all financial products. As a result, the entire market is impacted: retail banks, market operators, asset management firms, and more.
A Unique Challenge
To comply with this aspect of the directive, financial professionals need a flexible, easy-to-deploy platform for monitoring and recording mobile communications, capable of evolving with their needs.
While written communications can easily be archived and indexed, the new obligation to record voice calls requires specialized solutions. Capturing and recording mobile communications is a particular challenge that must be addressed carefully, taking all relevant factors into account.
Compliance and Usage Management
The two most common uses of mobile phones are voice calls and SMS. Smartphones have operating systems and can run various applications, including instant messaging apps like Skype, WhatsApp, Viber, or iMessage. While popular among consumers, these apps also present potential shadow IT risks when used professionally. Under MiFID II, the use of such apps must be strictly controlled by a company’s mobile device management (MDM) policies—covering smartphones, tablets, and laptops.
Some mobile recording solutions on the market rely on an app installed on the smartphone that runs in the background and cannot be uninstalled. Recordings are stored in a cloud infrastructure of uncertain location. In Luxembourg, effective control of cloud services must be ensured by a provider with PSF support status, meaning such solutions may not provide sufficient compliance guarantees for the local market.
These solutions also expose companies to device-related compliance risks—devices can be lost, stolen, or damaged—or to risks from accessing the data transmission network needed for recording communications.
Mobile Recording: Dual Compliance Assurance
The Mobile Recording solution developed by Proximus NXT and Tango captures communications directly through the mobile network operator. It works with both modern smartphones and older devices that only support calls and SMS.
Mobile Recording covers both voice and SMS communications and can be extended to fixed-line recording. To control software installed on mobile devices, Proximus NXT offers MDM solutions that allow clients to manage their mobile fleet and restrict or block apps not covered by compliance policies.
Coupled with MDM, Mobile Recording provides financial institutions with dual assurance: mobile communications are recorded in full compliance with MiFID II, and the use of applications on mobile devices is strictly controlled.
A Flexible, Scalable Solution
Built on a proven Compliance Recording platform, Mobile Recording can be easily extended to fixed telephony through U-touch, Proximus NXT’s cloud-based enterprise communication solution. Other media, such as VoIP, instant messaging, video conferencing, web conferencing, and screen sharing, can also be added. This provides clients with an integrated capture, archiving, and consolidation solution covering a significant portion of their MiFID II recording obligations.
Contract Terms Aligned with the Directive
Proximus NXT’s service contract aligns with the directive: the initial term is five years, matching MiFID II’s retention period. After two years, the contract can be terminated without penalty. At the end of the contract, clients have three months to retrieve recordings before permanent deletion. The solution itself is designed for a 10-year retention period.
Financial institutions implementing Mobile Recording to comply with MiFID II can significantly reduce legal and operational risks, improve customer service, and strengthen their competitive position.
Key Benefits
Mobile Recording offers everything financial institutions need in a recording platform:
- Network-level interception to minimize fraud risk
- Recording and storage of all mobile calls and SMS
- Extendable to fixed communications and other media
- Direct access to recordings for easy search and playback
- Dedicated environment with client-specific encryption keys for enhanced security
- Available on-site, in the cloud, or in hybrid mode for maximum flexibility
Choose Your Deployment Mode
Mobile Recording in the Cloud
Store all calls in Proximus NXT’s secure cloud environment. Access is automatically controlled, encrypted, and sealed to ensure legal admissibility and evidential value.
Cloud Recording with On-Premises Archiving
Archive recordings in your enterprise storage infrastructure while the capture service and configuration remain hosted by Proximus NXT.
On-Premises Recording
Install the solution entirely on your premises. Proximus NXT manages and operates the solution while relying on your hosting capabilities.
