How AI Insights Can Help You Comply with MiFID III, FCA CP25/18, 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 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. Read on to learn how Verint Financial Compliance (VFC) can help you adhere to MiFID III, FCA CP25/18, and other regulations with AI-powered financial compliance insights.

But first, a quick recap of MiFID II

Before we get to our titular 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. Read this eBook to learn more about these challenges and what you can do to solve them.

Increased focus on transparency, sales and advisory conversations, analytics, and AI in MiFID III

MiFID III introduces stricter requirements for financial services firms, focusing on greater market and data transparency through enhanced transaction reporting and consolidated tape systems. 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.

Tackling non-financial misconduct in financial services with CP25/18

Financial Conduct Authority’s CP25/18  impacts financial services firms by strengthening regulatory standards and public confidence through treating serious non-financial misconduct (NFM) – such as bullying, harassment, and violence – as a breach of conduct rules. It requires firms to assess and improve workplace culture, fostering psychologically safe environments and embedding accountability under the Senior Managers and Certification Regime. The consultation urges firms to create healthier workplaces while ensuring misconduct is addressed consistently across the sector.  The new Code of Conduct rule comes into effect in September 2026.

Address regulatory requirements with AI-powered financial compliance insights

Verint Financial Compliance offers various AI Insights to help businesses improve efficiencies and comply with a wide range of regulations, including MiFID II, MiFID III, and CP25/18.

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 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. 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 succinct, non-generic, persona-based summaries of an entire interaction.
• Notes & Actions Insight – Creates structured, high-quality meeting notes and follow-up actions.

Ultimately, these insights can help financial services firms increase cost savings, improve productivity, and elevate customer satisfaction using generative AI.

Additionally, check out 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.

Ensure employee wellbeing and adherence to code of conduct – as required by CP25/18

With CP25/18, the Financial Conduct Authority further tightens the rules around non-financial misconduct, putting employee wellbeing and workplace culture in the center of attention on a wider scale. As of September 2026, FCA will extend the Conduct Rules (COCON) to approximately 37,000 non-bank financial services firms, highlighting that bullying and harassment will be treated as a breach of the Conduct Rules in these organizations as well.

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.

Beyond MiFID and CP25/18 – 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.