Many finance firms may be unaware of the huge challenge ahead to comply with new recordkeeping requirements, an archiving firm says.

Businesses face new obligations on archiving their voice and electronic communications when MiFID II takes effect in January 2018.

Smarsh, which specialises in data archiving specialist, said it is crucial firms address the matter now, despite the implementation of the new EU rules being nearly two years away.

James Thompson, director, said: “Businesses are more than familiar with MiFID II and how it will affect their trading activity. But few are aware of how the new regime is going to impact their general recordkeeping obligations.

“The sheer scale of the new legislation, and its associated regulations, represents a huge challenge for businesses.

“Some of the requirements are still a ‘work in progress’ but for those aspects that have been finalised, it’s worth addressing them sooner rather than later. By starting now firms can make their lives easier by preparing for and then installing a responsive compliance program.”

Smarsh is producing a series of white papers to help firms deal with the issue.

In the first paper, Smarsh outlines the revised voice and electronic communications recordkeeping requirements for firms and includes help on how best to demonstrate MiFID II compliance in an efficient and cost effective way.

Mr Thompson said: “By January 3 2018 firms need to be able to archive, supervise and disclose all their electronic communications, inclusive of voice, from any device, personal or business.

“This is clearly a more rigorous climate of oversight and enforcement; the first thing firms need to be aware of is what the regulator will look for in a formal examination.

“A single, comprehensive archiving solution can help to satisfy the full scope of requirements.”

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