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MiFID III
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Learn how AI insights can help you comply with MiFID III and other financial regulations
Financial services have long been controlled by strict regulations, requiring institutions to capture, retain, and – upon request – promptly retrieve all communications connected to a trade. As failure to fulfill such requirements can result in severe legal, financial, and reputational consequences, firms have been putting increasing focus on their record-keeping and e-comm surveillance compliance efforts.
And although the evolution of technology and AI has made it easier for organizations to detect and proactively manage compliance and conduct risks in captured conversations, evolving and emerging regulations keep compliance and risk officers on their toes.
Learn how TM Group and Verint Financial Compliance (VFC) can help you adhere to MiFID III, and other regulations with AI-powered financial compliance insights.
But first, a quick recap of MiFID II
Before we get to upcoming new regulations, let’s revisit the requirements set forth by MiFID II, which was widely regarded as one of the most important financial regulations of its time, particularly within the European Union.
Implemented in 2018, the directive requires financial firms to record and store all trade-related communications – both written and spoken – for at least five years to ensure transparency and help regulators verify compliance and prevent market abuse. It compelled firms to implement secure systems for capturing and archiving these conversations, which has increased operational complexity and costs. The rule applies to any communication that could potentially lead to a transaction, making surveillance and monitoring a critical compliance function.
MiFID II presented financial services firms with numerous challenges, particularly with regards to voice conversations which – despite the increasing prevalence of UC tools and chat – remained a core means of communication in trading.
to learn more about these challenges and what you can do to solve them.
MiFID III - Increased focus on transparency, sales and advisory conversations, analytics, and AI
MiFID III introduces stricter requirements for financial services firms, focusing on greater market and data transparency through enhanced transaction reporting and consolidated tape systems (consolidated tape system aggregates trade data (price, volume, time, etc.) from all trading venues across the EU).
It elevates the importance of sales and advisory conversations, demanding clearer disclosures and compliance across all communication channels, including voice, messaging, and digital platforms. Firms must adopt advanced analytics to monitor execution quality and client interactions, while managing an expansion of communication channels under strict recordkeeping rules. Additionally, MiFID III sets higher expectations for AI use, encouraging automation in compliance, surveillance, and data analysis to meet regulatory standards efficiently.
Address regulatory requirements with AI-powered financial compliance insights
” TM Group and Verint Financial Compliance (VFC) offers various AI Insights to help businesses improve efficiencies and comply with a wide range of regulations, including MiFID II and MiFID III ”
Ensure compliance with MiFID II through automated risk assessment
MiFID II dictates that firms must monitor 100% of the communications for potential market abuse, including evidence of intent, not just actual fraudulent activity. Businesses have long relied on TM Group and Verint Financial Compliance to capture trade-related communications, but they also need to be able to gain insights from the captured data to be able to proactively manage potential breaches of compliance. Conduct Risk Insight helps compliance teams effortlessly detect and assess potential risk and leverage secure and explainable AI to understand the context of any risks found.
As a result, it helps surveillance platforms reduce false positive alerts, enabling staff to focus on real potential risks.
Improve review efficiency and enrich surveillance systems to facilitate compliance with MiFID III
MiFID III puts increased focus on market and data transparency, as well as sales and advisory conversations. But at the pace with which communications are piling up, AI-powered speech analytics becomes critical for organizations. TM Group and Verint Financial Compliance offers AI Meeting Insights that can help businesses improve operational efficiency and fulfill the MiFID III requirements at the same time:
» Activity Summary Insight:
Generates concise, non-generic, persona-based summaries of an entire interaction.
» Notes & Actions Insight:
Creates structured, high-quality meeting notes and follow-up actions.
Additionally, the Verint Trust Bot – a best-of-breed AI-powered technology that facilitates more informed decision-making by analyzing First Notification of Loss (FNOL) voice interactions in insurance claim departments to uncover potential acts of insurance fraud.
In addition to the benefits mentioned above, VFC AI Meeting Insights can also help businesses monitor employees’ adherence to internal policies and code of conduct guidelines. With every call captured, analyzed, and summarized for record-keeping and compliance purposes, VFC Activity Summary and Notes & Actions Insights can easily spot breach of conduct rules and act accordingly to avoid any grim consequences.
Unlocking AI Insights with Powerful Voice Analytics
When it comes to extracting real value from recorded voice data, everything starts with one core capability: high-quality transcription. A reliable transcription engine doesn’t just convert speech to text – it enables accurate, multilingual analysis across all Nordic languages and dialects. This foundation allows organizations to turn conversations into actionable insights.
Today, many upstream systems – such as record-keeping and surveillance platforms – already include transcription and AI-based fraud detection models. However, their focus is usually limited to trading and frontline personnel. This leaves a large portion of recorded employees, who are still subject to internal codes of conduct, without proper monitoring or access to meaningful voice analytics.
Why transcribe at the source?
At TM Group, we recommend performing voice transcription directly on the raw audio data, rather than relying solely on upstream systems. By doing so, organizations gain:
» A single, accurate source of truth for all recorded conversations
» Broader employee coverage, not just those involved in trading activities
» The ability to feed consistent, high-quality data into any AI model used by compliance,
fraud, or surveillance systems
In other words, deep AI insights start at the very beginning of the data chain. With accurate transcription in place, businesses can apply smarter analytics, improve compliance oversight, and unlock new opportunities for risk prevention – across the entire organization.
Beyond MiFID – Other key regulations for financial services firms
Firms must also comply with the Market Abuse Regulation (MAR), which targets insider trading, unlawful disclosure, and market manipulation across EU and UK markets. In the U.S., the Dodd-Frank Act imposes strict oversight on non-bank financial entities, requiring transparency, consumer protection, and risk management through agencies such as the CFPB and FSOC. AI-powered surveillance and reporting tools can help firms meet these global standards efficiently.
Read this datasheet to learn how VFC’s multichannel and multimodal capture solution can also help comply with Dodd Frank, MAR, and other financial regulations.
Why TM Group?
” Voice compliance isn’t just about recording calls – it’s an entire ecosystem. ”
From voice recording and transcription, to analytics, record-keeping, surveillance, and compliance controls, all system must connect seamlessly. If even one link is broken, organizations risk data loss, blind spots, and compliance exposure.
That’s where TM Group stands out. We specialize in every layer of the voice compliance vertical, ensuring all components work together as one unified solution. No disconnects. No gaps. Just complete, end-to-end oversight that keeps your organization protected and compliant.
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