FINRA Issues Social Media Guidance For Brokers
The Financial Industry Regulatory Authority (FINRA) issued guidance for brokers today on the use of social media.
The guidance in Regulatory Notice 10-06, which is presented in Q&A format, clarifies the responsibilities of firms to supervise the use of social networking sites to ensure that recommendations are suitable and their customers are not misled. The Notice also addresses the recordkeeping and other responsibilities of firms.
In issuing the guidance, FINRA cites the widespread use of social media:
According to a recent report by the Pew Internet and American Life Project, 46 percent of American adults who use the Internet logged onto a social networking site in 2009, which is up from8 percent in 2005. Other studies have shown that use of socialmedia sites by businesses to communicate with customers and the public has grown significantly in the past few years.
Related articles by Zemanta
- FINRA Issues Guidance to Firms, Brokers on Communications with Public Through Social Networking Web Sites (eon.businesswire.com)
- FINRA Funds Social Media Program (web2.sys-con.com)
- Financial Services & Social Media (socialmediatoday.com)
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_a.png?x-id=a3ca81d7-82e0-4d03-94ce-bb21e2fc211e)
Firms interested in learning more should check out the Companion Guide to FINRA Social Networking Compliance http://bit.ly/8xT73y. It picks up where Notice 10-06 leaves off, offering additional detail on social networking considerations and a checklist of requirements for choosing a social networking compliance vendor.
Comment by Chad Bockius — January 26, 2010 @ 10:09 am