leveraging social business amid the changing regulatory landscape - bdi 12/4/13 the future of...
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Presentation: Leveraging Social Business Amid The Changing Regulatory Landscape Presented by: Joanna Belbey, Social Media and Compliance Specialist, Actiance, Inc & Victor Gaxiola, Subject Matter Expert - Social Media, Actiance, Inc Learn how the latest forms of electronic communications can help your firm become a social business. Hear case studies that show how social media is being used by Financial Advisors and others to build awareness, attract leads and generate revenues. Learn about the evolving regulatory landscape and gain an understanding how your firm can use social tools effectively while complying with these rules and regulations. www.bdionline.comTRANSCRIPT
Confidential and Proprietary © 2012, Actiance, Inc. All rights reserved. Actiance and the Actiance logo are trademarks of Actiance, Inc.
Leveraging Social Media Amid the Changing Regulatory Landscape
Joanna Belbey- Social Media and Compliance Specialist Victor Gaxiola- Subject Matter Expert, Social Media
@belbey @VictorGaxiola #BDI1
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#TeamActiance
Facebook.com/Joanna.BelbeyLinkedin.com/in/belbey
@BelbeyAbout.me/JoannaBelbey
Facebook.com/VMGaxiolaLinkedin.com/in/[email protected]/VictorGaxiola
@belbey @victorgaxiola #BDI1
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Compliance
10 of 10
8 of 10Top US Banks
Top European Banks
About Actiance
Key Partners
76%
2 of 3Global Wealth Managers
60,000+Finance Professionals on Socialite
5 of 5Top Canadian Banks
Social
We are the Market Leader
13M+Social Network Connections
Global Operations
North American Financial Services Market
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@@belbey @victorgaxiola #BDI1
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Wikis
Public Instant
Messaging
Public Instant
Messaging
IndustryNetworksIndustryNetworks
WebWebUnified
CommunicationUnified
Communication
FutureFuture
Social NetworksSocial NetworksCollaborationCollaboration
Today’s social businesscan’t use just one
collaborative technology to keep its employees connected
– it needs to use them all.
@belbey @victorgaxiola #BDI1
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Leads to Several Challenges
• Complexity• Adoption• ROI
Enablement
• Feature Control • Data Leakage• Incoming
Threats
Security
• Regulations• Corporate
Policies• Legal Hold
Governance
@belbey @victorgaxiola #BDI1
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Compliance Overview For Social Media for Financial Advisors
Recordkeeping
Preserve records of written business communications for specific time periods. (If you write it out, it’s “written”.) LinkedIn - Updates, InMail; Twitter - Tweets, Direct Messages; Facebook – Posts, Messages. Regulators only are interested in business communications. Includes Third Party content. Includes personal devices, as content, not source, is determinative
Work with third party to capture, archive and make e-discoverable all written communications. Many firms prohibit retweets to avoid appearance of “adoption and entanglement” with resulting recordkeeping and advertising requirements.
Regulation Definition Recommendation
@belbey @victorgaxiola #BDI1
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Compliance Overview For Social Media for Financial Advisors
Testimonials
Testimonials are prohibited for Investment Advisors (IAs) and need to be qualified for Registered Representatives (RRs).
Many firms prohibit “Recommendations” and “Skills” on LinkedIn, “Retweets” on Twitter and “Likes” on Facebook to avoid the appearance of an endorsement.
Suitability“Know Your Customer”. Recommendations must be suitable for every investor.
Most firms prohibit product recommendations and investment strategies unless preapproved by a registered principle of the firm.
Regulation Definition Recommendation
@belbey @victorgaxiola #BDI1
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Compliance Overview For Social Media for Financial Advisors
Advertising
Content standards are the same as other communications. Firms are also responsible for both suitability and recordkeeping of third party content (links, posts).
Most firms prohibit retweets, favorites and likes to avoid appearance of “adoption and entanglement”. Static content, such as a LinkedIn Profile that contains more than business card information, is an advertisement and requires pre-approval. Interactive communications do not require pre-approval. LinkedIn, Facebook and Twitter have both. Supervision, recordkeeping apply.
SupervisionFirms must evidence that they are supervising communications.
Use similar written supervisory procedures already in place. Employ risk based principals for review. Limit access to social media unless supervised. Pre-approval of content is required in certain cases. Appropriate training is required.
Regulation Social Network and RecommendationsDefinition Recommendation
@belbey @victorgaxiola #BDI1
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• LinkedIn – read only– Listening is key, watching connections who matter– Use to see “money in motion” events
• Real results– LinkedIn Connection retirement status change = $2.75m
account acquisition– Job Change noticed on Status Update = 401k rollover– FA obtains 400 new prospects in Energy market– New commercial account opportunity through
colleague’s LinkedIn connections
Case Study: Wealth Management Firm (NJ)
@belbey @victorgaxiola #BDI1
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• Situation– LinkedIn already available to 1200+– Veteran Advisers, tech savvy– Authentic content
• Real results– @MaryS_rwbaird
• 51 followers• 93 Tweets (at the time)• $1m prospect, later closed
Case Study: RW Baird
@belbey @victorgaxiola #BDI1
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Drive customer loyalty
A friend sees an owie, and sendsa cure.
@belbey @victorgaxiola #BDI1
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Leverage your connections
In a company town,
building a network,
closes business for you.
@belbey @victorgaxiola #BDI1
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Close new business
At a marathon, a supporter, became a client.
@belbey @victorgaxiola #BDI1
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And finally, will Social Media replace the cold call?
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• [email protected]• @Actiance• @belbey @victorgaxiola• Further reading:
– FINRA 10-06, 11-39 Matrix – FINRA Social Media Handbook– Belbey Blogs: FINRA Spot
Checks Call for Social Planning
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