Earlier this year, I wrote a four-part series on social media compliance, because few topics seem to generate as much uncertainty and confusion for financial professionals — and regulators — these days. FINRA presented notice 10-06 last January, but just as social media tools change rapidly, so does the guidance controlling them. Consequently, FINRA released regulatory notice 11-39 in August, with additional information on how firms must supervise and record their social media activities.
The new notice does not alter 10-06; instead, it gives direct responses to user questions regarding recordkeeping, supervision, links to third-party sites, data feeds and personal devices. Some of the further clarification includes:
- FINRA supervision requirements differ for static and interactive communications, but the recordkeeping requirements do not.
- Interactive content can become static depending on how you use it.
- Firms must train and educate their employees regarding their specific social media policies and procedures.
- Firms that “co-brand” a third-party site — including prominent placement of their logo — are responsible for all site content.
- Firms must ensure social media compliance in all business communications — regardless of whether they occur on company- or employee-owned equipment.
Notice 11-39 offers brief explanations and 14 Q&As, but many firms still have questions about how to best protect themselves from social media risks. If you have any questions or concerns about your firm’s social media compliance before, give me a call at 804.965.5403. Ultimately, education, training and firm policies are the foundation of a healthy social media presence — and I’d be happy to help ensure you are protected.