Since I have an interest in both Social Media and the Financial Services industry, I wanted to create a blog post with various resources I have encountered recently. This is a win-win for me as it helps organize my resources while providing an easy way to share this content with others.
Social media in the financial services space is different than some other industries because regulations imposed on and overseen by the Financial Industry Regulatory Authority (also known as FINRA). Social media impacts financial disclosures, investor protection and marketing activities — and needs to be approached with more caution than most other industries. Because of these issues and the conservative nature of the industry, most financial services firms have been slow to adopt social media practices.
But most firms would admit that they cannot continue to ignore this important channel.
In a speech on June 28, 2011, Richard Ketchum, CEO of FINRA, said this about Social Media:
I wanted to talk about an ongoing challenge that I know you are all struggling with: social media, and how to keep pace with disclosure and investor protection issues. In 2009, FINRA organized a Social Networking Task Force composed of FINRA staff and industry representatives to discuss how firms and their registered representatives could use social media sites for legitimate business purposes in a manner that ensures investor protection. Based on input from the Task Force and others, FINRA issued Regulatory Notice 10-06 last year.
The task force continues to examine some of the more recent questions and concerns involving social media. For example, firms have had questions about the best way to supervise “business card” information that is posted on a social media site, particularly when there is the potential for employees to communicate about securities-related business through these sites. Firms have also questioned how they can most effectively supervise employees’ use of personal devices, such as smart phones, BlackBerries and iPads, which are able to access firm systems. The Task Force has discussed some broader Internet issues that extend beyond social media sites, such as the use of hyperlinks from firm websites to third-party sites, and the use of third-party data on firm websites. Our goal is to provide further guidance on these issues in a Notice to be published later this year. In the meantime, we welcome your input, and look forward to working with the industry on social media issues going forward.
To start off, here is a wonderful presentation on how FINRA impacts social media in the financial services sector by marketing expert Glen Gilmore.
- Source — Glen Gilmore
- Date — June 2011
- Source — FINRA
- Date — January 2010
- Source — FINRA
- Date — April 2011
- Source — LinkedIn
- This is a group for anyone interested in this topic and there are about 900 members currently
- Source — Search Financial Security/Tech Target
- Date — June 2010
- Source — Compliance Building
- Date — March 2010
- Source — MarketWatch
- Date — February 2011
- Source — Reuters.com
- Date — May 2011
- Tipping Point
- February 2011
- March 2010