Business Development InstituteSocial Media in Wealth ManagementFebruary 23, 2012Joanna BelbeySocial Media and Compliance S...
Why are we presenting to you today? Joanna Belbey Social Media and Compliance Specialist FINRA Education Department Runnin...
About Actiance, Inc  A decade of expertise, a history of firsts  Global Operations   • 3 US offices, three continents   • ...
Agenda Introductions Changing landscape Social Media Maturity Curve Early successes Regulatory landscape 9 things you can ...
So who’s using Social Media? And Why? Sales & Marketing          Promotions          Advertising          Branding    ...
Social Media Maturity Curve                                                                                  Early Majorit...
Case Study: Raymond James1000 FAs in 3 weeks
Case Study: RW BairdOutline                               Real Results LinkedIn already available to 1200     @MaryS_rwbai...
Case Study: Wealth Management Firm (NJ)Outline                                Real Results LinkedIn only                  ...
e
Risks of Using Social Media and Web 2.0    Data Leakage          Incoming Threats   Compliance & eDiscovery      User Beha...
Overview of Regulation & Compliance
Types of financial advisors Registered Representatives                  Investment Advisors (Broker-Dealer)*              ...
Financial Industry Regulatory Authority (FINRA) RegulatoryGuidance 10-06, 11-39 Rule                        Description   ...
The Securities Exchange Commission (SEC) NationalExamination Alert Guidance                       Description             ...
IIROC Guidelines          Regulation                               Social Media and Web 2.0 Impact                        ...
So, what’s a tweet?                      Pg. 18
Regulators and Social Media FINRA: RR Jenny Ta used Twitter to tout stock. Ta’s “tweets” were unbalanced, overwhelmingly p...
What can you easily do to mitigate risks 1. Understand your firms landscape, get visibility. 2. Engage stakeholders in pol...
To infinity….. And beyond..
Contact Information  info@actiance.com  @Actiance, @belbeyFurther reading:  Marketers Guide to Social Media in Financial  ...
Thank youJoanna BelbeySocial Media and Compliance Specialisthttp://www.linkedin.com/in/belbey@belbeyConfidential and Propr...
Joanna Belbey, Actiance Presentation - BDI 2/23/12 Social Media in Wealth Management Leadership Forum
Joanna Belbey, Actiance Presentation - BDI 2/23/12 Social Media in Wealth Management Leadership Forum
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Joanna Belbey, Actiance Presentation - BDI 2/23/12 Social Media in Wealth Management Leadership Forum

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Joanna Belbey, Social Media and Compliance Specialist, Actiance, Inc

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Joanna Belbey, Actiance Presentation - BDI 2/23/12 Social Media in Wealth Management Leadership Forum

  1. 1. Business Development InstituteSocial Media in Wealth ManagementFebruary 23, 2012Joanna BelbeySocial Media and Compliance Specialisthttp://linkedin.com/in/belbeywww.facebook.com/#!/joanna.belbeyTwitter: @belbey
  2. 2. Why are we presenting to you today? Joanna Belbey Social Media and Compliance Specialist FINRA Education Department Running training firm I help firms use social media while complying with the regulations Twitter: @belbey, @actiance LinkedIn: http://www.linkedin.com/in/belbey My biggest challenge?
  3. 3. About Actiance, Inc A decade of expertise, a history of firsts Global Operations • 3 US offices, three continents • 210 employees Dedicated Social Engagement Team • Partnering: networks, platforms, service providers • Regulators: FINRA, IIROC, FSA, SEBI… • Best Practice enablement, education Client Engagement • 9 out of the top 10 US Banks, Top 5 CDN Banks • 284 FINRA firms • 82,000 Social Networking users under license
  4. 4. Agenda Introductions Changing landscape Social Media Maturity Curve Early successes Regulatory landscape 9 things you can do to get started Materials
  5. 5. So who’s using Social Media? And Why? Sales & Marketing  Promotions  Advertising  Branding  Financial Advisors / Producers HR  Background checks  Recruiting Scientists & Researchers  Information exchange  Collaboration IT  Investigation of security breaches
  6. 6. Social Media Maturity Curve Early Majority Early Adopters • Corporate social presence • Corporate presence • Social media usage Early Consideration • Acceptable use policy by distributed teams • Some corporate advisors • Social media being presence used by distributed • Acceptable use policy Pre-Consideration • Banned/ restrictive teams/advisors • Next: use social policy in place • No social presence • Next: use social to to develop, strengthen • Pilot program for develop, strengthen relationships, for some • Restrictive social content distribution relationships, for also as a sales channel policy may be in place some also as a sales • No social tools • Previous concerns • Next: justify channel about FINRA and/ or • Need to: identify distributed teams impact of social media options, best practices usage overcome by market acceptance and demonstrable results.
  7. 7. Case Study: Raymond James1000 FAs in 3 weeks
  8. 8. Case Study: RW BairdOutline Real Results LinkedIn already available to 1200 @MaryS_rwbaird Veteran advisers, tech savvy – 51 followers Authentic content – 96 Tweets – $1m prospect
  9. 9. Case Study: Wealth Management Firm (NJ)Outline Real Results LinkedIn only LinkedIn connection retirement status change = $2.75m account Listening is key, watching acquisition connections who matter – Job change noticed on Status Using social as an integral element Update = 401k roll over of communications mix to spot change – FA obtains 400 new prospects in Energy market – New commercial account opportunity through colleagues’ LinkedIn Connections
  10. 10. e
  11. 11. Risks of Using Social Media and Web 2.0 Data Leakage Incoming Threats Compliance & eDiscovery User BehaviorPersonal SEC, FINRA EmployeeInformation Malware, Spyware Productivity HIPAA, FISMAIntellectual Property Viruses, Trojans Bandwidth SOX, PCI, FSACredit Card, Explosion InappropriateSSN FRCP- eDiscovery Content Every employee isClient Records FERC, NERC the face of business
  12. 12. Overview of Regulation & Compliance
  13. 13. Types of financial advisors Registered Representatives Investment Advisors (Broker-Dealer)* (Registered Investment Advisor)* Regulated by FINRA and the SEC Regulated by SEC or state regulators Paid via commission Paid fee by client Suitability- recommendations must be Fiduciary responsibility – must place clients consistent with best interest of clients interests above own Ethics Legality Transactions Advice *Dually registered firms must adhere to both SEC and FINRA rules.
  14. 14. Financial Industry Regulatory Authority (FINRA) RegulatoryGuidance 10-06, 11-39 Rule Description Best Practice Recordkeeping Capture, save and make Third party vendor(s). easily available, all written business correspondence Suitability Recommendations must be Prohibit recommending suitable for each investor specific products Communications with the Content standards Disable the ability to make public recommendations Advertising Static v. interactive Pre-approval, post-review Adoption and entanglement Third Party Content Retweeting, “liking” blocked Supervision Demonstrate adherence with Follow risk-based written content standards supervisory procedures
  15. 15. The Securities Exchange Commission (SEC) NationalExamination Alert Guidance Description Best Practice Factors to consider for Identify risks Consider pre-review of all effective compliance program content posted by IAS Third Party Content Possibly testimonials May need to re-evaluate separate professional pages Recordkeeping (Advisers Act) Capture, save and make Third party vendors easily available, all written business correspondence
  16. 16. IIROC Guidelines Regulation Social Media and Web 2.0 Impact Provides guidance on recordkeeping, suitability, supervision, and retention of sales11-0349 literature, advertisements, and correspondenceRule 29.1 Anonymous representations or recommendations are improper.Rule 29.7 (1) Advertising and sales literature shall not be false or misleading. Written policies and procedures shall be in place regarding the review andRule 29.7 (2) supervision of sales literature related to the business.Rule 29.7 (3) Some types of sales literature must be pre-approved by a supervisor. Recordkeeping requirements - two years for advertisements and five years for allRule 29.7 (5) correspondenceNational Instrument 31-103 Firms must retain records of all their business activities and communications.
  17. 17. So, what’s a tweet? Pg. 18
  18. 18. Regulators and Social Media FINRA: RR Jenny Ta used Twitter to tout stock. Ta’s “tweets” were unbalanced, overwhelmingly positive and frequently predicted increases. Fined $10K and suspended for one year. SEC Division of Enforcement: Alleges that Anthony Fields of Lyons IL offered more than $500 billion in fictitious securities through various social media sites. FINRA exams: lists of RR using social media, checking against social media policy
  19. 19. What can you easily do to mitigate risks 1. Understand your firms landscape, get visibility. 2. Engage stakeholders in policy setting. Set the policy. 3. Consider and address the risks, in a granular fashion. 4. Protect your network from malware, phishing, attacks, data leakage 5. Issue and implement best practice guidelines. 6. Understand and manage the fallibility of human beings. 7. Record and retain (appropriate) communications. 8. Provide education for your users on acceptable and appropriate use. 9. Review and refine policies (regularly).
  20. 20. To infinity….. And beyond..
  21. 21. Contact Information info@actiance.com @Actiance, @belbeyFurther reading: Marketers Guide to Social Media in Financial Services FINRA 10-06 and11-39 requirements mapped to Facebook, LinkedIn, and Twitter features Social Media Handbook Osterman Research: The Impact of New Communication Tools for Financial Services Firms Actiance Collateral Library http://actiance.com/products/collateral- library.aspx
  22. 22. Thank youJoanna BelbeySocial Media and Compliance Specialisthttp://www.linkedin.com/in/belbey@belbeyConfidential and Proprietary © 2012, Actiance, Inc.All rights reserved. Actiance and the Actiance logo are trademarks of Actiance, Inc

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