FPADFW Chapter - Social Media Best Practices

Transcription

1 FPADFW Chapter - Social Media Best Practices Guidelines for Utilizing Social Media in a Regulated Industry D. Bruce Johnston President & CEO September 20, Executive Summary Social media applications like LinkedIn, Twitter and Facebook offer cost effective and cost efficient opportunities to grow and develop your practice and brand. Used inappropriately, these applications may open your practice up to risk. The purpose of the following presentation is threefold: 2 1

2 Executive Summary Provide you with a working understanding of social media and the various applications; Provide you with a clear understanding of the appropriate FINRA regulations governing various social media applications; and Provide attendees with guidelines for developing your social media strategy. 3 Confusion Reigns Supreme Provide Clarity 4 2

3 9/15/2011 About Your Presenter 5 Agenda 6 3

4 Agenda 7 Like a thousand conversations at once. 8 4

5 Social media is one major component of an overall internet marketing strategy Our strategy utilizes multiply organic and viral tools to broaden your reach and measure the results Public relations Networks, book marks Content aggregators Social Media Thought Leadership Public relations Blogs Whitepapers Keyword strategy Website modifications Content changes SEO Internet Marketing Strategy Compliance Social media policy Archiving Best practices General tracking Individual tracking Market segmentation Analytics Marketing Automation campaigns Lead management Funnel marketing 9 More than the Big 3 5

6 Social Media Revolution 2011 Social Media Revolution 2011 Video: Agenda 12 6

7 Social networking compliance is unique Unique challenges presented by Social Networks vs. and IM Standards Based No Yes Pace of Change Weekly Little Corporate Controls No Yes Content Oriented Yes Yes Activity Oriented Yes No Audience Viral Controlled 13 There is oversight.. and it can be expensive 14 7

8 Rules & Regulations FINRA NASD 3010 NASD 2210 (b) SEC 17a4 15 Rule Changer FINRA Not binding or actionable Communications with the public Sales literature (25+) = SL Password-protected websites = SL Websites = Advertisement Chat Rooms = PA 16 8

9 FINRA Understanding the Risks The release of FINRA Notice makes it very clear that ALL communication via the internet, including the social networks, is the same as in person or written communication. Considerations: Twitter, Facebook & LinkedIn are like traditional written communications 17 FINRA Understanding the Risks Clarifications from FINRA Notice include: Social Media Policy Firms must adopt policies and procedures reasonably designed to protect investors Retention & Supervision You must capture and retain social media content as required by 17a-3 and 17a-4. You must supervise this content under NASD Rule 3010 Static/Interactive Static require pre-approval, interactive content does not Third Party Posts Not responsible for content unless you endorse it. Tip: don t favorite or like a third party post, be careful of retweets 18 9

10 Rules to know BEFORE participating in social networks Recommendations / Testimonials Rule 206(4) It shall constitute a fraudulent, deceptive, or manipulative act, practice, or course of business within the meaning of section 206(4) of the Act for any investment adviser registered or required to be registered under section 203 of the Act, directly or indirectly, to publish, circulate, or distribute any advertisement: (1) Which refers, directly or indirectly, to any testimonial of any kind concerning the investment adviser or concerning any advice, analysis, report or other service rendered by such investment adviser. 19 Rules to know BEFORE participating in social networks Considerations LinkedIn provides a simple mechanism to capture and display recommendations. A recommendation displayed from a client would trigger this rule. Recommendations from non-clients may fall outside of the SEC guidelines, however, given the amount of information that can be discovered through the associated profiles, it is possible it could be perceived as a violation

11 Rules to know BEFORE participating in social networks Third-Party Posts Rule 2210(b) / Notice As a general matter, FINRA does not treat posts by customers or other third parties as the firm s communication with the public subject to Rule Thus, the prior principal approval, content and filing requirements of Rule 2210 do not apply to these posts. Under certain circumstances, however, third-party posts may become attributable to the firm. Whether third-part content is attributable to a firm depends on whether the firm has (1) involved itself in the preparation of the content or (2) explicitly or implicitly endorsed or approve the content. 21 Rules to know BEFORE participating in social networks Third-Party Posts Rule 3010 & 2210(b) / Notice Creates an obligation to review correspondence Supervisory role of surveillance Retention of all material (even non-reviewed) to avoid surprises Creates an obligation for moderation Ability to moderate & pre-approve as needed with audit trail 22 11

12 Rules to know BEFORE participating in social networks Considerations Republishing a comment from a third-party, such as retweeting, will likely be considered an endorsement by the firm. Favoriting a post on Twitter or Liking a comment on Facebook can also be seen as an endorsement by the firm. 23 Rules to know BEFORE participating in social networks SEC Rule 17a4 Records Retention Indexing & Retrieval Verification & Time-Stamping 24 12

13 Rules to know BEFORE participating in social networks Social Media Archiving Capture Content from anywhere Pre or post surveillance options Archive Platforms FB, LinkedIn, Twitter Blogs, websites, videos RSS Feeds 25 FINRA you should know: Static: Content that remains posted until it is changed by the firm or individual who created it originally. Generally, static content is accessible to all visitors. Examples include profile, background, or wall information. Interactive: Content that is used for real-time communications. Interactive content can be accessible by all site visitors or a subset depending on where the content is posted. Examples include Tweets, status updates or comments. Action: FINRA does not specify a site action as another type of content. I have added it to help clarify the compliance issues associated with these sites. An action is anything an account owner can do that does not necessarily create new content but could lead to a compliance concern. Examples include updating your profile, liking a Facebook status, or creating a list of followers

14 Definition of Action Steps: Block Access: Disable the ability to access a feature of a social networking site Archive: Capture and retain posted content in an easily discoverable format Pre-review: Analyze and moderate content before it is posted to a social network Post-review: Analyze and audit content after it is posted to a social network Real-time scan: Scan posts in real-time to detect exceptions and then route for review. 27 Applying the Rules to: 28 14

15 Facebook Capabilities Home Page Static & Interactive Advertising Public Appearance Pre Review Archive & Post Review 29 Facebook Capabilities Create Status Comment Interactive Public Appearance Scan Archive Post Review 30 15

16 Facebook Capabilities Edit Account Settings Action Not Allowed Block after Initial Setup 31 Facebook Capabilities Delete Status Update Action Not Allowed Archive& Post Review 32 16

17 Facebook Capabilities Like a Status Update Action Not Allowed Block 33 Twitter A Quick Reference Bio Advertisement Pre Review Static Archive 34 17

18 Twitter A Quick Reference Edit Account Settings Action Not Allowed Block after Initial Post 35 Twitter A Quick Reference Tweet Interactiv e Not Allowed Block after Initial Post 36 18

19 Twitter A Quick Reference Delete a Tweet Action Not Allowed Archive& Post Review 37 Twitter A Quick Reference Favorite a Tweet Action Endorsement Block 38 19

20 LinkedIn A Quick Reference Summary Static Advertisement Archive Pre Review 39 LinkedIn A Quick Reference Create Network Update Interactive Public Appearance Scan Archive Post Review 40 20

21 LinkedIn A Quick Reference Recommendations Static Advertisement Archive Pre Review 41 LinkedIn A Quick Reference Edit Profile Action Not Allowed Block after initial profile is created 42 21

22 LinkedIn A Quick Reference Rate an Answer Action Not Allowed Block 43 LinkedIn A Quick Reference Private Comments Action Not Allowed Block 44 22

23 Agenda 45 Before You Engage Have a social media policy in place

24 Define Your Goals and Objectives This includes: Establishing your goals Getting Input from stakeholders Market research and analytics Your areas of thought leadership Map influences Map responsibilities Develop keyword strategy 47 Best Practices Acceptable Content Guidelines Acceptable Discussion Topics: Macro Economic Concepts Retirement Concepts Educational pieces on financial markets Educational pieces on products & sectors Acceptable Post Topics: Broad Appeal charity events, community activities, etc. Non-product or services related announcements Generic responses to third-party postings 48 24

25 Best Practices Un-Acceptable Content Guidelines Un-Acceptable Discussion Topics: No mention of a stock by name No investment advice Promoting your products or services forbidden Un-Acceptable Discussion Topics: No promissory statements re: market or price direction No unauthorized employee postings No re-tweets on Twitter 49 How Advisors are Using Social Media 50 25

26 9/15/2011 How Advisors are Using Social Media 51 How Advisors are Using Social Media 52 26

27 How Advisors are Using Social Media 53 Agenda 54 27

28 Contact Information 55 28