Advisors Using Social Media Targeted by FINRA
By Hal M. Bundrick
NEW YORK (MainStreet)--Reps may want to re-visit the manner in which they tweet, post status updates and launch blog rants, as financial advisor use of social media garners ever increasing regulatory scrutiny. FINRA has announced that it will be spot-checking compliance of social media communications, starting with top-producing advisors.
Selected broker-dealers are being asked to provide an explanation of how they are currently employing social media outlets such as Facebook, Twitter, LinkedIn and blogs. And they are looking for specifics "as to the business purpose of each social media platform as it is used by the firm."
The agency is asking B-Ds to provide:
- The URL for each of the social media sites used by the firm at the corporate level.
- The date the firm began using each of the sites.
- The identity of all individuals who post and/or update content of these sites.
- And each firm's written supervisory procedures concerning the production, approval and distribution of social media communications.
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