Social Media Usage & Compliance – What You Should Know

According to a recent Spectrem eZine report, 55% of the “mass affluent” and 46% of millionaires are now utilizing Facebook. So, connecting with this demographic through social media is definitely something to consider. [1]

But what are the risks of using social media when it comes to the Financial Professional? What are the regulatory considerations? First thing’s first – if you’re using or considering using social media within your practice and you haven’t yet carefully digested FINRA’s Regulatory Notice 11-39, you should. You can view it here:

Social Media usage and content may or may not be considered advertising – it depends. Obviously the ways in which people utilize this technology is as varied as the technology itself. Chatting, for example, may be considered “interactive content”, whereas content which will remain relatively static (a blog post, for example) would be considered advertising.

Core Compliance & Legal Services, Inc. released their “Risk Management Update” this month, with information on the latest regulatory guidelines. Definitely worth a read …




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