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Interpreting FINRA Regulatory Notice 10-06 & 11-39 and Using Social Media
The Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 10-06 & 11-39 in January 2010 to provide guidance to broker-dealers regarding the use of social media for advertising. As social media is relatively new in the financial services industry, firms are still feeling their way around, trying to better understand how they can use social media effectively. A task force convened in March 2011 to revisit 10-06 & 11-39 and see whether additional guidance was necessary, given the dynamic pace of social media. Social media has already proven to be a powerful marketing tool for other industries such as retail and technology, and registered representatives are keen to hop on the bandwagon and take advantage of this new communications channel.
This handbook is intended as a primer on Regulatory Notice 10-06 & 11-39 and how it relates to social media sites like Facebook, LinkedIn, and Twitter. Additionally, the handbook details how each of the features of the aforementioned sites maps to 10-06, what the appropriate course of action should be, and what kinds of issues FINRA regulators are most interested in when conducting their audits.