No – this is not a blog about Apple and its $14bn dollar tax argument with the EU, or the annual $240bn that an international tax reforming project is targeting. But it is about closing the avoidance loopholes that exist in some systems. In our particular area of speciality, compliant mobile call recording, the big loophole is those calls and communications that traders can make which cut out the traditional mobile network.
Ever since regulations which required the recording of trader’s calls came into force, some dealers have inevitably looked for ways around the system. Initially, the only calls being recorded were from fixed lines – making the mobile phone a handy route around the regulation for some.
And when the regulations in the UK were extended to mobile calls as well, initially not all handsets could be covered and not all firms felt able to enforce the regulations. In fact, some dealt with the situation by simply opting to say mobiles were not to be used for calls regarding trades.
But when the MiFiD II regulations come into force sometime during the next 18 months – firms will no longer be able to use that argument. The new rules cover far more than just calls involving a trade; they cover all calls relating to a trade, however they are made, even if the trade does not happen and even if that call does not involve a client. The new regulations go further than ever before, and non-compliance is really not an option.
What’s more, mobile call recording systems like ours at Voxsmart have evolved so much that the handset argument is over. Our VSmart system works automatically and seamlessly in the background on any Android handset – including the world’s most popular models from Samsung – and on any Blackberry 10 handset. And as far as iPhone users are concerned – well, we have an App for that as the saying goes.
What’s more, VSmart also works on any network, anywhere in the world. So all those excuses for non-compliance are going and companies can close all those loopholes in the system to minimise their risk.
Also, three of our customers will be testing a new service over the next three months and we then plan to launch it fully around the turn of the year.
Of course tax avoidance is legal and often clever – albeit sometimes morally dubious. But avoiding compliance with financial regulations is not legal, and companies found to be in breach of EU regulations could face some very serious fines.
Finding loopholes in the recording process will therefore not be clever, it will be unlawful, and put trading firms at risk. That’s why we think it’s better if we close the loopholes in the first place, don’t you think? Watch this space for more news.