More research suggests that many businesses are still in the dark about their compliance status in relation to the Markets in Financial Instruments Directive (MiFID II) which comes into force on 3rd January.
In a survey this month, 39% of UK financial organisations did not know whether their organisation was compliant; and 25% owned up to non-compliance in terms of call recording while 29% were still going through the compliance process.
Under the new rules, businesses that provide or advise on financial instruments and services in the EU (shares, bonds, units in collective investment schemes and derivatives) can be fined up to 5 million euros or 10% of annual turnover for non-compliance.
At the time of the research undertaken by Timico just 8% of companies were fully aware of the legal implications of MiFID II and had given staff training on the matter.
Timico CTO Kevin Linsell said: "It's clear that many businesses are massively unprepared for MiFID II, despite having had the last 12 months to prepare for the legislation.
"It's imperative that companies get compliant recording technology in place and their employees fully trained on the new requirements to avoid potentially incurring huge financial penalties.
"The fact that nearly half of UK financial organisations that we have surveyed currently have no mobile compliance platform in place is concerning.
"We know from our own financial clients that a large section of the workforce conduct business on mobiles, as teams are constantly travelling between markets and working remotely. It is essential companies get compliant systems in place."