www.fa-mag.com

www.pw-mag.com

Presented by

1
Get Compliant with
Social Media
Presented by
Presented by

Agenda
Speakers Bio
Risks Without Compliance & Social Media

Compliance 101
Frequently Asked Compliance Ques...
Presented by

Jennifer Openshaw
• A nationally known expert

• Wall Street Journal columnist
• President, Finect:
• Compli...
Presented by

Stuart Fross

• Partner, Foley & Lardner, LLP

• Former Fidelity International General Counse
• US Securitie...
Presented by

Jeff Spears
• CEO of Sanctuary Wealth Services, LLC;
• Former National Sales Manager, Bank of
America Privat...
Presented by

1.

Risks
Presented by

Q:

What are risks of NOT using social
media for investment firms or
advisors?

 Opportunity Cost
 Visibil...
Presented by

Q:

What are risks of using social media?

 Providing investment advice?
 SEC or State regulator
 Complia...
Presented by

2.
Compliance

101
Presented by

Q:

What are top issues compliance
officers should address when using
social media?

 Supervision
 Complia...
Presented by

Q:

What are top compliance challenges
advisors (or marketing staff) face
when using social media?

 FINRA ...
Presented by

Summing Up - 3 Rs:

Review content
Recordkeeping
Remove bad content
Presented by

How Finect helps you
Compliance officer may review,
pre-approve content
Compliance officers remove bad conte...
Presented by

Static vs. Interactive
Content
Presented by

Static Content

Interactive Content

• Remains posted until
changed
by the firm or individual

• Real-time c...
Presented by

Static Content Examples

Profile

Tweetsmore flexible: interactive
Presented by

Static Content Examples

Personal bio
Presented by

Static Content Examples

Wall post
Presented by

Interactive Content Examples

Inbox message
Presented by

Interactive Content Examples

Comments
Presented by

Interactive Content Examples

Like
Presented by

Interactive Content Examples

Re-tweet
Presented by

Q:

What are different compliance rules
for static vs interactive content on
social media?
 SEC guidance on...
Presented by

Q:

What are different strategies for
writing static and interactive
content on social media?

 Static:
 T...
Presented by

Q:

How does FINRA view social media?
What actions are they taking?

• FINRA: social media like a public pre...
Presented by

Q:

What do advisors need to know when
preparing for FINRA Spot-Checks?

 Social Media Blotter
How Finect helps you
Presented by

Archives all social media content
Simple & easy to access records
CCOs to remove offend...
Presented by

3.
Frequently Asked
Questions
Presented by

Q:

What is the best practice for
responding to negative comments?

 Take the high road – maintain
a positi...
Presented by

Q:

Are advisors responsible for client’s
comments on his/her blog sites?

 Generally, no. But take care

...
Presented by

Q:

Where are sources of your social
media (blog) content?

 Internal posts are driven by
voracious reading...
Presented by

Q:

Strategies for firms or advisors using
LinkedIn, Facebook & Twitter for
business?
Don’t Mix
Business & P...
Presented by

3 Things to Know
Make it relevant
Simple “headlines”

Schedule your time
Presented by

Q:

When a post links to third-party
content, are firms responsible for that
content (on linked sites)?

1. ...
Presented by

Q:

Will a LinkedIn “recommendation”,
Facebook “Like” or Twitter “Re-tweet”
violate the testimonial rule?

T...
Presented by

Q:

If a post/blog draws regulatory
scrutiny, do advisors have a defense if
their firm can document a strong...
Presented by

Q:

Are there any limitations or
challenges for advisors using social
media when a conversation is
supervise...
Presented by

Q:

Should companies monitor employees’
personal social media accounts? In
what situations?

 Yes

 SEC do...
Presented by

Q:

What should firms be careful about
when monitoring personal social
media accounts?

 We view Social Med...
Presented by

How Finect helps you
Track your employees on social
media
Social media manager system for
CCOs to review wha...
Presented by

Q:

How can companies successfully get
their CCOs on board?

5 steps – Show that…
1. The social media site c...
Presented by

Q:

How can CCOs and marketing staff
(or advisors) successfully work
together?

 Communication
 Education
Presented by

Improve workflow by:

Adopt appropriate tools

Train & educate employees
Create a social media policy
Presented by

4.
Social Media Policy
Presented by

Q:

What are some key components of a
good social media policy?



Setting review process and time
commitme...
Presented by

Q:

What are the key regulatory requirements
for a social media policy?

Questions to frame your approach

C...
Presented by

Q:

What are the key regulatory requirements
for a social media policy?

Questions to frame your approach
Ca...
Presented by

Q:

What are the key regulatory requirements
for a social media policy?

Assuming the firm gets to “yes” on ...
Presented by

5.
Training & Educating
Employees
Presented by

Real World Cases
 At Morgan Stanley, advisors are
allowed to use social media after
training, and about 4,7...
Presented by

Q:

What are the top 3 compliance issues
companies MUST educate their
advisors about?

 Educate, but don’t ...
Presented by

Q:

How can firms develop a social
media training program for their
staff?

 Weekly meetings that include
b...
Presented by

How Finect helps you
Easy table for employees to view their
social media permissions
Presented by

6.
Cost of Compliance?
Presented by

Q:

What is the cost of your compliance?



Recordkeeping mechanism:
record & retrieve site content



Non...
Presented by

Q:

What is the cost of your
compliance?

 We are the CCO and
Compliance Officer for all of
our partner fir...
Presented by

Q:

How should a firm get started with
compliant social media?

Two choices :
Start with a platform that mak...
Presented by

Q:

How should a firm get started with
compliant social media?
Presented by

4 Steps to Getting Started
 Know you goals
 Know your brand
 Choose your platform
 Measure results
Presented by

7.
Any Questions?
CE Credits
This webinar qualified for 1.0 hour of CIMA®, CIMC® or CPWA® credit. If you would like to gain credit for parti...
Upcoming SlideShare
Loading in …5
×

Get Compliant With Social Media Webinar

1,872 views
1,764 views

Published on

The recent FINRA case of a broker fined and suspended for violating its social media policy underscores the importance of knowing the rules and what's allowed. In this one-hour conversation with former Fidelity compliance chief Stuart Fross and industry experts, address:

- Planning for the regulators - versus failing to plan
- The top issues compliance officers and marketers should address to use social media.
- Challenges with LinkedIn, other social platforms to engaging clients, prospects
- Client comments on advisor blog sites
- Elements of a good social media policy (template provided)
- Best practices in using social media for advisors and compliance officers.
- Strategies and tools for saving time with a unified and compliant approach to social media.

Who should listen:

- Compliance Professionals
- Financial advisors and marketing leaders such as: CMO, Digital marketing heads, content/communications.

Published in: Social Media, Technology, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,872
On SlideShare
0
From Embeds
0
Number of Embeds
855
Actions
Shares
0
Downloads
4
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide
  • Are you engaged in a business of providing investment advice-If so, registration with the SEC or a State regulator seems to be a likely requirement- Once you embrace registration, or if you are registered, you need compliance policies and procedures relative to the securities laws
  • And so can a user (remove bad content) – they can even remove a comment on their feed (from another user)
  • FINRA divided the type of communication into two categories – static and interactive contentStatic content is the content: Remains posted until changed by the firm or individualAccessible to all website visitors. While Interactive content is the real time communication. Let’s see the examples ….http://hearsaysocial.com/2011/09/finra-social-media-regulations-webinar/http://www.mofo.com/files/uploads/images/110803-finra-to-issue-more-guidance-on-social-media.pdf
  • The example of static content such as Twitter profile, and the twitter feeds
  • Personal bio such as experience, licensee
  • Facebook wall post
  • While the interactive content, the real-time communication such as inbox message,
  • Comments under blog post or wall post
  • Facebook like
  • And twitter re-tweet, they are the example of static and interactive content, Now let’s explore the different compliance rules for these two types of content.
  • ???“challenegs’?
  • Liability for third party content depends on whether the company has (1) involved itself in the preparation of the information (the “entanglement theory”) or (2) explicitly or implicating endorsed or approved the information (the “adoption theory”). Generally, the adviser ought to be able to know if it prepared the material that it hyperlinks to and generally ought to be able to avoid endorsing or approving it by means of a pop up that says – the Advisor does not enorse or adopt the material on someone else’s website. All of this is a bit tricker for interactive social media, and here the OICE guidance is worth reiterating: Firms that allow for third party postings on their social media sites - or that can not control those posting - may consider having policies and procedures concerning third party postings:Reasonable safe guards in place to “avoid any violation of the federal securities laws”Safeguards to address potential testimonials (may include “like” buttons)
  • In other words, if an advisor of XYZ firm posts a blog and links to third party content, are they responsible for that content in any way and what it might represent to clients or prospects?
  • Generally, yes. The SEC does not accept that officers of firms act in their personal capacities on facebook, for example. Recently, the SEC issued guidance when an officer of Netflix posted good news on his personal facebook page – this immediately became the company’s problem as well as his own.
  • Step one: prove that the social media site that you are thinking about can be made compliant.Prove that the firm can control access to users. Having a gatekeeping mechanism is the first step.Prove that the content can be preserved or is inherently preserved by the site and can be retrieved.Prove that you have the compliance resources to monitor the activities on the site.Then write a policy and a procedure for social media.
  • Include slide after – from last webinar and article – 3 things to get strated- brand, target, goals/metrics (specific ex of metrics)
  • - Educate, but don’t advise. I would want to be sure that IARs are not giving advice particular to any individual investor or even a group of invetors, whose particular circumstances are not captured in a know your customer compliance process typical of onboarding a new client. All advice has to be suitable. Of course, advice to clients can be conveyed electronically, and even could be conveyed using social media sites, but only if those sites were well designed for that purpose. Education is fine, advice is a no-go zone on most social media sites.- No predictions; no commitments. If you say that your firm is a big buyer of a stock, or will be, you are asking for trouble. Research and ratings are fine, but are very carefully crafted documents. As for blog postings, remember that “loose lips sink ships”, so don’t make predictions or commitments in a blog posting.- Know what you don’t know. Sometimes, silence is golden. If you don’t know what to say about a topic or a thread, step away. If the firm is big enough, it’s time to phone a friend, particularly a friend in compliance who can confirm that your friend inside is approved to join the conversation. Better embarrassment than enforcement, every time.
  • When training and educating your employees, the most important thing is to provide a clear guideline of their permissions on social media. In Finect, each employee can view their own permissions which set up by their compliance officers in a easy table. For example, this table shows if the person can share groups profiles to other channels. 
  • I would think that firms simply have to find a way to record and retrieve site content. That record keeping mechanism, at a minimum, would seem to be needed and has to be a cost to be considered.Of course, non-compliance is going to be the most costly of all, as it can cost you your career.
  • My take is that there are but two choices – you can start with a social media platform that makes compliance easy, or you can install a system in front of a social media platform that is not inherently compliant. A system that is inherently compliant may offer you the opportunity to innovate and interact with clients and prospects in ways that are probably not going to happen on non-compliant media.
  • Get Compliant With Social Media Webinar

    1. 1. www.fa-mag.com www.pw-mag.com Presented by 1
    2. 2. Get Compliant with Social Media Presented by
    3. 3. Presented by Agenda Speakers Bio Risks Without Compliance & Social Media Compliance 101 Frequently Asked Compliance Questions Social Media Policy How to Train & Educate Employees The Cost of Compliance Q&A
    4. 4. Presented by Jennifer Openshaw • A nationally known expert • Wall Street Journal columnist • President, Finect: • Compliant social media simplified • Bank of America, BankOne/JPM • Frequent speaker • Author of “The Millionaire Zone”
    5. 5. Presented by Stuart Fross • Partner, Foley & Lardner, LLP • Former Fidelity International General Counse • US Securities Counsel, Finect
    6. 6. Presented by Jeff Spears • CEO of Sanctuary Wealth Services, LLC; • Former National Sales Manager, Bank of America Private Bank • Head of Montgomery Securities Private Client Group
    7. 7. Presented by 1. Risks
    8. 8. Presented by Q: What are risks of NOT using social media for investment firms or advisors?  Opportunity Cost  Visibility  Allow Competitors to Define You
    9. 9. Presented by Q: What are risks of using social media?  Providing investment advice?  SEC or State regulator  Compliance policies & procedures
    10. 10. Presented by 2. Compliance 101
    11. 11. Presented by Q: What are top issues compliance officers should address when using social media?  Supervision  Compliance policies & procedures  Recordkeeping (including third party content)
    12. 12. Presented by Q: What are top compliance challenges advisors (or marketing staff) face when using social media?  FINRA Advertising Regulations  Expediency
    13. 13. Presented by Summing Up - 3 Rs: Review content Recordkeeping Remove bad content
    14. 14. Presented by How Finect helps you Compliance officer may review, pre-approve content Compliance officers remove bad content Easy access records for all employees
    15. 15. Presented by Static vs. Interactive Content
    16. 16. Presented by Static Content Interactive Content • Remains posted until changed by the firm or individual • Real-time communication • Accessible to all website visitors • Ex: Blog posting • EX: Chat room, In-mail
    17. 17. Presented by Static Content Examples Profile Tweetsmore flexible: interactive
    18. 18. Presented by Static Content Examples Personal bio
    19. 19. Presented by Static Content Examples Wall post
    20. 20. Presented by Interactive Content Examples Inbox message
    21. 21. Presented by Interactive Content Examples Comments
    22. 22. Presented by Interactive Content Examples Like
    23. 23. Presented by Interactive Content Examples Re-tweet
    24. 24. Presented by Q: What are different compliance rules for static vs interactive content on social media?  SEC guidance on websites  Anti-fraud rules apply  Advisers Act - Negligent misstatements or omissions o Advisers Act Advertising rules/testimonial rules  Securities Act / Exchange Act  State Securities Laws
    25. 25. Presented by Q: What are different strategies for writing static and interactive content on social media?  Static:  Time  Relevancy  Interactive:  Haters
    26. 26. Presented by Q: How does FINRA view social media? What actions are they taking? • FINRA: social media like a public presentation • Member firms have the same record keeping and suitability obligations as with a public presentation • Commendations may be recommendations • Registered principal pre-review any recommendation • Interactive social media must be supervised on a risk-based principle basis
    27. 27. Presented by Q: What do advisors need to know when preparing for FINRA Spot-Checks?  Social Media Blotter
    28. 28. How Finect helps you Presented by Archives all social media content Simple & easy to access records CCOs to remove offending posts quickly & easily CCOs to assign permissions to employees Blog post approval process
    29. 29. Presented by 3. Frequently Asked Questions
    30. 30. Presented by Q: What is the best practice for responding to negative comments?  Take the high road – maintain a positive voice
    31. 31. Presented by Q: Are advisors responsible for client’s comments on his/her blog sites?  Generally, no. But take care  Do not “adopt”  Do not “entangle ” yourself  FINRA strong on third party content as not a communication
    32. 32. Presented by Q: Where are sources of your social media (blog) content?  Internal posts are driven by voracious reading and networking Read Networking
    33. 33. Presented by Q: Strategies for firms or advisors using LinkedIn, Facebook & Twitter for business? Don’t Mix Business & Personal     LinkedIn: Network/prospect and for job postings Facebook: Business page ineffective seems geared to retail businesses Twitter: Re-Tweet interesting articles instead of emailing Google +: SEO impact solution
    34. 34. Presented by 3 Things to Know Make it relevant Simple “headlines” Schedule your time
    35. 35. Presented by Q: When a post links to third-party content, are firms responsible for that content (on linked sites)? 1. FINRA: Depends on whether the company has (1) Involved itself in the preparation of the information or (2) Explicitly or implicating endorsed or approved the information 2. OICE guidance: (1) Reasonable safeguard to avoid violation (2) Address possible testimonials (3) Entanglement/adoption
    36. 36. Presented by Q: Will a LinkedIn “recommendation”, Facebook “Like” or Twitter “Re-tweet” violate the testimonial rule? The SEC staff doesn’t “like” LinkedIn endorsement Like - a grey area Re-tweet – typically not a testimonial Finect controls
    37. 37. Presented by Q: If a post/blog draws regulatory scrutiny, do advisors have a defense if their firm can document a strong supervision process?  Yes!  Supervision is a duty - “failure to supervise” is a violation  Adequate supervision is a defense for supervisors and firms
    38. 38. Presented by Q: Are there any limitations or challenges for advisors using social media when a conversation is supervised?  Time  Quality
    39. 39. Presented by Q: Should companies monitor employees’ personal social media accounts? In what situations?  Yes  SEC does not accept personal capacities  Netflix case
    40. 40. Presented by Q: What should firms be careful about when monitoring personal social media accounts?  We view Social Media no differently than we view normal regulatory supervision responsibilities.
    41. 41. Presented by How Finect helps you Track your employees on social media Social media manager system for CCOs to review what advisors or other staff share on social media
    42. 42. Presented by Q: How can companies successfully get their CCOs on board? 5 steps – Show that… 1. The social media site can be made compliant 2. The firm can control access to users 3. The content can be preserved & retrieved 4. Compliance resources to monitor the activities 5. A social media policy & procedure
    43. 43. Presented by Q: How can CCOs and marketing staff (or advisors) successfully work together?  Communication  Education
    44. 44. Presented by Improve workflow by: Adopt appropriate tools Train & educate employees Create a social media policy
    45. 45. Presented by 4. Social Media Policy
    46. 46. Presented by Q: What are some key components of a good social media policy?  Setting review process and time commitment – most people give up too soon  Decide which metrics you will use to evaluate
    47. 47. Presented by Q: What are the key regulatory requirements for a social media policy? Questions to frame your approach Can the firm control who has access? Can the medium keep records of content? Can records be deleted? Can firm control who has permission to delete? Can content be deleted? Can the firm opt-in/out of functionality? Can the firm control who can put up static content and document approvals? Can the firm control who has access to interactive posting on the firm’s behalf? Can the firm monitor Company sponsored activity in the medium? Can the firm monitor its employees personal activity in the medium?
    48. 48. Presented by Q: What are the key regulatory requirements for a social media policy? Questions to frame your approach Can the firm post disclaimers in appropriate places as to: • Its own content • Third party hyperlinks • Third party posts Has the firm considered and eliminated “red flags”? If not  Does a third party vendor offer a “filter” that could provide a compliance engine?
    49. 49. Presented by Q: What are the key regulatory requirements for a social media policy? Assuming the firm gets to “yes” on the above: Does the firm have the resources to discharge its compliance obligations? Does firm have a compliance policy? Does the firm have a training program? Does the firm have an approved list of authorized users? Has the firm considered potential conflicts of interest? Monitoring program and record of results Sanctions program Annual certification of compliance by all employees and by authorized users.
    50. 50. Presented by 5. Training & Educating Employees
    51. 51. Presented by Real World Cases  At Morgan Stanley, advisors are allowed to use social media after training, and about 4,700 have been approved to do so.  At Wells Fargo’s financial advisor also received compliance and content training.
    52. 52. Presented by Q: What are the top 3 compliance issues companies MUST educate their advisors about?  Educate, but don’t advise  No predictions; no commitments  Know what you don’t know.
    53. 53. Presented by Q: How can firms develop a social media training program for their staff?  Weekly meetings that include business updates & social media updates
    54. 54. Presented by How Finect helps you Easy table for employees to view their social media permissions
    55. 55. Presented by 6. Cost of Compliance?
    56. 56. Presented by Q: What is the cost of your compliance?  Recordkeeping mechanism: record & retrieve site content  Non-compliance = the most costly
    57. 57. Presented by Q: What is the cost of your compliance?  We are the CCO and Compliance Officer for all of our partner firms
    58. 58. Presented by Q: How should a firm get started with compliant social media? Two choices : Start with a platform that makes compliance easy Install a system
    59. 59. Presented by Q: How should a firm get started with compliant social media?
    60. 60. Presented by 4 Steps to Getting Started  Know you goals  Know your brand  Choose your platform  Measure results
    61. 61. Presented by 7. Any Questions?
    62. 62. CE Credits This webinar qualified for 1.0 hour of CIMA®, CIMC® or CPWA® credit. If you would like to gain credit for participating in this webinar, please follow the directions below to do so. Visit our website at http://www.fa-mag.com/ce_center.php Select the designation you would like to report the webinar to. Choose from either CFP Board or IMCA. If you have already registered to complete and report CE credits with us, please login using your username and password. If you are new to our CE Center, please complete a registration form in its entirety. (Note: You will need to supply your ID# generated from the CFP Board or IMCA.) Once you are logged in to your CE Center account, please read the important information regarding the CE reporting process. After you have done this, continue to scroll towards the bottom of the page to find the list of CE exams and webinars we offer. Click on the webinar you are interested in. (Please note that the webinar title begins with the word “Webinar – THEN THE NAME.) You will be asked a question regarding the webinar that must be answered correctly. If answered correctly, you will be prompted to a “Certificate Of Completion” page. Print this page and keep a copy for your record. The webinar credit will be reported by Financial Advisor magazine the first week of the new month for the previous month. Allow 10 business days for the credit to be posted on your account. If you have any questions regarding CE credit reporting, please email Sherri Scordo at sscordo@fa-mag.com To view the slides and a recording of this webinar please visit http://www.fa-mag.com/socialmedia1029 For upcoming webinars, please visit http://www.fa-mag.com/webcasts.html Please send your questions, comments and feedback to: dzarcaro@fa-mag.com Presented by 62

    ×