What telephone conversations and electronic communications should be recorded in accordance with Article 16(7) MIFID II?

Answer 11

In ESMA’s view, the following stages of conversations and electronic communications [For example, transactions concluded through online websites, online platforms and smart phone applications.] that relate to the provision of client order services or dealing on own account will be caught by the rules:

• Conversations or communications with a client, or a person acting on behalf of such a client, which relate to an agreement by the firm to carry out one of the covered activities, whether as principal or agent.

• Conversations or communications with any other person, which relate to transactions concluded when dealing on own account and the provision of client order services that relate to the reception, transmission and execution of client orders. This should include telephone conversations or electronic communications such as: transmitting an order to a broker or placing an order with an entity for execution, conversations or communications relating to the handling of an order (including solicitations and acceptance of transactions).