Social  Media  &  Financial  Services  

Created  and  presented  by:  

Joyce  Sullivan  

Founder  and  CEO  

SocMediaFin,  Inc.  

Exclusive  presenta;on  for  

February  13,  2013  

Agenda  

•  Overview  and  introduc;ons  •  The  5  ques'ons℠  •  Social  media  tools  –  established  and  emerging  •  U.S.  compliance  and  regula;on  overview  •  GeMng  started  with  social  media  training  &  pilot  programs  •  Suggested  next  steps  •  Discussion  and  ques;ons  

Social  Media  &  Financial  Services  

Social  Media  Strategy  for  Financial  Services  for  US  Firms

•  Can  you  use  social  media  in  financial  services?  

•  Are  there  certain  social  media  tools  that  are  recommended?  

•  What  are  the  regula;ons  and  compliance  rules?    ▫  The  fun  stuff  -­‐  FINRA  and  SEC  regulatory  guidance  

•  Where  can  you  get  training  to  learn  social  media  and  financial  services  basics?  

Before  asking  “Which  social  media  tools  should  I  use?”    answer  these  5  ques'ons℠  

1.  Who  are  you?  

2.  What  do  you  have  to  say?  

3.  Who  are  you  trying  to  reach?  

5.  Once  you  connect,  then  what?  

4.  How  do  they  WANT  to  be  reached?...  or  not  

The  5  ques'ons℠  

1.  Who  are  you?  Employee,  business-­‐line  owner,  industry  execu;ve,  wealth  manager,  private  banker  

2.  What  do  you  have  to  say?  

Great  skills,  great  products,    excellent  company  to  work  with,  outstanding  service  

3.  Who  are  you  trying  to  reach?  

Your  current  customer,    poten;al  new  customer,  industry  leaders,  compe;tors  

The  5  ques'ons℠

4.  How  do  they  WANT  to  be  

reached?  ...  Or  not.  

   Email  (home  or  work)     Voicemail     Phone  text     Instant  message     Twicer     LinkedIn     Facebook       (public  or  private  message)  

5.  Once  you  are  ready  to    connect,  

then  what?  

How  do  you  develop  meaningful  connec;ons  while  complying  with  industry  regula;ons?  

The  5  ques'ons℠-­‐  with  your  answers  

1.  Who  are  you?  

2.  What  do  you  have  to  say?  

3.  Who  are  you  trying  to  reach?  

4.  How  do  they  WANT  to  be  reached?  

5.  Once  you  are  ready  to  connect,  then  what?  

Paper  and  electronic  communica;ons  must  be  archived  

Social  media  communica;ons  

Social media compliance software needs to be in place to monitor and archive social media posts

Social  Media  Tools  –  established  and  emerging  

And  many  more…  

2006  2004  

2011  

2005  Launched:  2002  

2011  2009   2009  

US  Regula;ons  and  Guidance:  Use  of  Social  Media  Investment  Advisors  and  Broker-­‐Dealers  

Recordkeeping    it’s  the  content  that  ma2ers  All  business  communica;ons  whether  transmiced  by  desktop,  smart  phones  (Blackberry,  Android,  iPhone  etc),  tablets  (iPads)  etc.  must  be  retained  -­‐   lecers,  emails,  all  wricen  communica;on  -­‐   instant  messages,  social  media  messages  (LinkedIn  email,  Facebook  posts,  Tweets)  -­‐   social  media  ac;vi;es  (Likes  on  Facebook,  Retweets  on  twicer,  posts  on  LinkedIn)  

Disclosures  proper  disclosures  for  rela'onships  you  may  develop  e.g.  bloggers,  adver;sers,  affiliates  

Adver;sing    sta'c  adver'sing  requires  preapproval    interac;ve  adver;sing  can  be  post  review  but  not,  “Days  ajer  the  fact”  

Communica;on  with  the  public  must  adhere  to  exis'ng  content  standards  Suitability  –  know  your  customer,  only  make  recommenda;ons  suitable  for  your  clients  

Supervision    firms  must  demonstrate  they  are  supervising  wri2en  communica'ons  

Training  registered  personal  be  trained  before  they  start  using  social  media  

Similar  overall  for  -­‐    FINRA,  SEC  (US),  IIROC  (Canada),  SEBI  (India)  and  FAS  (UK)  

Highlights  -­‐  US  Regula;ons  and  Guidance:    Record  Reten;on  

  Securi;es  and  Exchange  Commission  (SEC)  1934  

  Amendments  to  Books  and  Records  Requirements  for  Brokers  and  Dealers    

  May  2003    

  Na;onal  Examina;on  Risk  Alert  -­‐  Investment  Advisor  Use  of  Social  Media  

  January  2012    

Highlights  -­‐  US  Regula;ons  and  Guidance:  Record  Reten;on

SEC Rule 17a-4 Amendments to Books and Records Requirements for Brokers and Dealers Under the Securities Exchange Act of 1934 http://www.sec.gov/rules/final/34-44992.htm Effective: May 2, 2003

Same  recordkeeping  requirements  with  guidance  for  electronics  records  

hcp://www.sec.gov/about/offices/ocie/riskalert-­‐socialmedia.pdf  

Same  recordkeeping  requirements  with  guidance  for  social  media  and  electronic  devices  

Highlights  -­‐  US  Regula;ons  and  Guidance:  Record  Reten;on

Highlights  -­‐  US  Regula;ons  and  Guidance:    Electronic  Communica;ons  &  Social  Media  Use  

  Regulatory  No;ce  07-­‐59  Supervision  of  Electronic  Communica;ons  (2007)  

  Regulatory  No;ce  10-­‐06  Guidance  on  Blogs  and  Social  Media  Websites  (2010)  

  Regulatory  No;ce  11-­‐39  Guidance  on  Electronic  Devices  (2011)  

  Regulatory  No;ce  12-­‐29  New  Rules  Governing  Communica;ons  With  The  Public  (effec;ve  Feb  4,  2013)  

http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p037553.pdf

http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p120779.pdf

hcp://www.finra.org/web/groups/industry/@ip/@reg/@no;ce/documents/no;ces/p124186.pdf  

hcp://www.finra.org/web/groups/industry/@ip/@reg/@no;ce/documents/no;ces/p127014.pdf  

What  Registered  Investment  Advisors  (RIA)  Need  to  Know  About  Social  Media  Use  

First,  treat  all  social  media  networking  as  adver&sing.  

meet  the  broad  defini;on  of  “adver;sement”  under  the  Investment  Advisors  Act  of  1940  (the  Act).    

Second,  an  advisor  must  avoid  tes&monials,  which  are  strictly  prohibited  under  Rule  206(4)-­‐1.  

LinkedIn:  an  advisors  should  not  accept  a  recommenda;on  from  a  client  or  write  a  recommenda;on  for  them.  

Facebook:  Advisors  should  not  “Like”  someone  or  accept  “Likes”  

 TwiMer:  an  advisor  should  also  not  repost  (retweet)  or  “FAV”  (favorite)  anyone’s  tweets.

Blogging  –  an  advisor  should  pre-­‐approve  all  visitor  comments  on  RIA  established  blogs  before  allowing  the  comments  to  post.    

http://www.primerus.com/business-law-articles/what-registered-investment-advisors-need-to-know-about-social-media-use-622201.htm

.

Five  basic  principles  

What  Registered  Investment  Advisors  (RIA)  Need  to  Know  About  Social  Media  Use  

http://www.primerus.com/business-law-articles/what-registered-investment-advisors-need-to-know-about-social-media-use-622201.htm

Fourth,  when  using  social  media  and  networking  sites,  a  RIA  must  ensure  that  it  maintains  confiden&ality  

o   of  its  clients’  and  prospects’  financial  and  personal  informa;on.    

FiOh,  a  RIA  must  create  and  implement  a  wri4en  social  media  policy  and  provide  training.      

o   Such  a  policy  is  an  absolute  “must  have”  in  this  social  media  saturated  environment.  o The  advisor  must  provide  for  employee  training  and  educa&on  regarding  the  policy  o   The  policy  needs  to  address  supervision  and  monitoring  of  social  media  usage    o   Social  media  usage  must  be  regularly  and  ac;vity  supervised  and  monitored  o   Monitor  third  par;es’  use  of  advisor  social  media  outlets  

Third,  an  advisor  must  be  aware  of  its  record  keeping  obliga&ons  under  the  Act.      

o Every  public  adver;sement  reaching  10  or  more  people  must  be  documented  and  retained  in  the  advisor’s  files  for  a  minimum  of  5  years  

Five  basic  principles  (cont’d)  

Before  asking  “Which  social  media  tools  should  I  use?”    answer  these  5  ques'ons℠  

1.  Who  are  you?  

2.  What  do  you  have  to  say?  

3.  Who  are  you  trying  to  reach?  

5.  Once  you  connect,  then  what?  

4.  How  do  they  WANT  to  be  reached?..  Or  not?  

The  5  ques'ons℠

4.  How  do  they  WANT  to  be  

reached?  ...  Or  not.  

   Email  (home  or  work)     Voicemail     Phone  text     Instant  message     Twicer     LinkedIn     Facebook       (public  or  private  message)  

5.  Once  you  are  ready  to    connect,  

then  what?  

How  do  you  develop  meaningful  connec;ons  while  complying  with  industry  regula;ons?  

Suggested  Next  Steps  

Learn  the  social  media  regulatory  basics    Get  to  know  your  legal  and  compliance  department    Discuss  how  together  you  can  come  up  with  a  pilot  program    Engage  senior  stakeholders  and  func;onal  groups  for  a  pilot  

Keep  up  with  the  compe;;ve  landscape    Par;cipate  in  and  acend  industry  events  to  stay  current  

Suggested  Next  Steps    Social  media  policy    Become  familiar  with  your  firm’s  social  media  policy    Get  to  know  the  group  working  on  social  media  training    Volunteer  to  partner  with  a  team  working  on  social  media  planning  

Social  media  training    Include  social  media  training  for  employees  and  staff    Types  of  social  media  training  you’re  looking  for    Eventually  empower  employees  to  support  and  protect  your  brand  

Thank you! Please connect with me. I would enjoy hearing from you.

LinkedIn  hcp://linkedin.com/in/joycemsullivan  

About.me  hcp://about.me/joycemsullivan  

Twicer  hcp://twicer.com/joycemsullivan  

Website  hcp://socmediafin.com  

email:        joyce@socmediafin.com  

26

Joyce

Social  Media  Strategy  and  Program  Management  Services  

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Visit us >  SocMediaFin.com  

Social  Media  &  Financial  Services  

Created  and  presented  by:  

Joyce  Sullivan  

Founder  and  CEO  

SocMediaFin,  Inc.  

Exclusive  presenta;on  for  

February  13,  2013