Are you using social media? I’d be surprised if you weren’t . . . and if you’re part of a financial institution subject to FINRA (the Financial Industry Regulatory Authority), you’ll want to know about a new notice that just went into effect about use of social media.
On January 25, 2010, FINRA issued a regulatory notice (pdf download) giving guidance on how the FINRA rules apply to social media sites that are sponsored by financial firms and their registered representatives. My partners Chris Bennett and Amy Greer have written a report summarizing the relevant parts of the notice and explaining how the rules can affect you. For example, you still have to comply with the normal recordkeeping requirements when using social media — and this can be a real challenge, since the requirements were set up before social media gained widespread use. The FINRA notice includes a discussion of some requirements for adopting a system for supervision and review of social media communications. And there is new guidance about how the rules apply to the content that you post.
To learn more about the issues you can encounter when using social media for business – in any industry – take a look at this full-length write-up (pdf download).