TRUPHONE WARNS DEADLINE LOOMING FOR DODD-FRANK MOBILE RECORDING COMPLIANCE
NEW YORK, NY – October 10, 2013 – Since its passing in 2008, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), continues to send ripples throughout the financial industry, as firms struggle to meet a broad range of regulatory and compliance requirements that have yet to come into effect. One such provision aims to bring greater transparency and accountability to the swaps market.
Under Dodd-Frank, market participants are required to maintain full and complete swaps trading records. In December 2012, the CFTC approved an amendment to expand the rule to include the recordkeeping of all oral communications – including those conducted electronically – leading to the execution of swaps. The deadline to comply with the new rule is December 21st, 2013.
As part of the oral communications amendment, swaps dealers (SDs) and major swaps participants (MSPs) must ensure that all relevant calls and electronic communications conducted on mobile devices –including text messages and voicemails – are recorded, and the data is stored for at least 12 months. Similar rules were first introduced in Norway, and later implemented in the United Kingdom in 2011.
While the recording of fixed-line conversations is nothing new in the U.S., the recording of mobile devices creates a whole new set of challenges for IT managers, who must now manage complexities related to regional variations in policy and the inconsistent and variable nature of mobile networks globally.
With less than three months to prepare, CIOs, compliance executives and IT managers must immediately develop a comprehensive plan to meet compliance with the rule – whether through a company-wide IT policy or technology. While a compliance-issued policy may appear to be the best way to quickly meet regulatory requirements at minimal cost or disruption to employees, failure to strictly adhere to the policy and implement a solution can expose the organization to penalties and fines.
Fortunately, there are a number of approaches an organization can take to meet compliance through available technologies. According to Truphone, a leading provider of global mobile recording solutions, technology-based approaches include:
These applications are designed to work with a specific type of device. The software is installed on the phone to control the device's call routing functionality. The software routes the call through a server which then records it. One of the major downsides to this approach is that the process can interrupt the call, resulting in delays in both inbound and outbound calls anywhere from 5 to 20 seconds.
Application-based technology has also failed to tackle the challenge of roaming handsets which travel abroad. The added layer of complexity introduced by roaming conflicts with the recording application and can result in the call not being recorded, or not being made or received when the user is abroad.
The benefit of using a handset application is that an organization can retain its existing mobile network operator agreement with no need to change SIMs or hardware.
With these solutions, recording takes place in the network. Typically a mobile recorded enabled SIM card is put into the phone and recording happens automatically, subsequently taking place for all calls and messages. It is ideal for organizations that have multiple devices or expect to see a movement of their phone estate towards BYOD.
Network-based recording is also ideal if users travel frequently. Because it taps directly into the mobile network infrastructure, it can work seamlessly around the world – provided the user is connected to the network being recording.
For those who are worried about the costs of complying with the regulations, network recording can also be more cost-effective. Unlike application-based recording, there are no extra calls to the recording software. You only pay for the cost of one call. There are no call delays either, giving a seamless end user experience.
Integration into the corporate PBX is another potential way of trying to tie in mobile compliance with fixed line compliance. The solutions in this space vary but generally rely on the presence of a "data connection" on the mobile network to allow an OTT application, for example a Voice Over IP (VOIP) client, to function. The recording can then be carried out on the fixed line infrastructure. However, there are multiple issues with this solution including delays in calling experience and the inability to manage inbound calls and record SMS.
Time is running out.
Financial organizations must utilize the time remaining before the deadline to address their policies and begin implementing solutions. In fact, these firms might find that even though compliance appears arduous, with the right technology in place, it can lead to a higher quality telecommunications network and significant savings in the long-term.
For more information on the mobile recording regulation and technology options please visit http://www.truphone.com/tmr.
By Paul Liesching, Senior Vice President of Truphone Mobile Recording.
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Truphone, Inc. is a member of the Truphone group of companies.
Truphone is the only mobile operator in the world that expands the reach of businesses beyond the borders of their home country. Truphone achieves this by providing multiple international numbers on a single SIM, enabling businesses to make international calls that are treated as local calls and providing contacts a direct way to get in touch on a local number. Truphone's approach also eliminates or reduces mobile roaming costs for voice and data services, keeping staff better connected when they travel. The company's patented SIM-based offering works in more than 200 countries. With US headquarters in Durham, NC, Truphone has offices across 4 continents and continues to expand aggressively. Our clients include FTSE 1000 and Fortune 50 companies across multiple sectors.