The record keeping requirements laid out in MiFID II insist that great care is taken to keep close records of all relevant communications. In particular, as of January 2018, firms are required to take the following actions:

For face-to-face conversations, minutes or notes should be used to record them. ESMA states that firms will need to keep records on the date and location of meetings, the identites of the people in attendance, and all relevant information on the proposed transaction. MiFID II deems these conversations to be equivalent to orders received by telephone.

All communications regarding transactions will need to be stored for a minimum of five years – a substantial increase from the current period of six months. If requested by an NCA (National Competent Authority), the communications may need to be kept for up to seven years. Records should be made available to clients on request.

The records must be easily retrievable and fully monitored, for access and reporting to relevant regulators in the industry standard 72-hour time frame.

A crucial part of the MiFID II record keeping requirements is that the records cannot be manipulated or altered. Since the data relating to trade and communications is so sensitive, it must be stored in WORM (write once, read many) format, which is considered to be fully tamper-proof.