Helping the financial industry adopt social networking
Top compliance Issues in SM for Wealth Management?
What laws, regulations and company-originated compliance rules should be taken into account when using social media for wealth management? Let's crowdsource a list and discuss.
Tags: Management, Wealth
Views: 46
Replies to This Discussion
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Permalink Reply by Susan Weiner, CFA on -
David,
I link to resources in my blog post, "FINRA/SEC compliance issues for bloggers."
Many of the links are to people who participate in this group, so I expect you'll receive many replies to this post.
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Permalink Reply by Stephen Selby on -
I think the easiest way to attack this question is to take a cue from FINRA RN 10-06. One of the underlying messages was simply that the media does not matter per se, all of the old rules apply. So, perhaps the problem is "merely" listing rules which apply to all electronic communications as a starting point.
* Books and records rules for BDs, RIAs and insurance agents / companies (using SEC Rules 17a(3-4) as a model for electronic retention - RIA electronic record retention rules are very similar.)
* Advertising and Public communications under the same jurisdictions
* Regulation SP (for privacy) and state privacy laws
* Reg FD (heavily influential to FINRA 10-06)
* Intellectual property laws from two perspectives: 1) protecting one's own IP; and 2) ensuring producers don't add copyrighted or otherwise protected material, such as music, to videos etc.
* Suitability rules where applicable
* Anti-Trust
* Supervisory systems: e.g. FINRA 3010, 3012, 3130(b); and SEC Reg 206(4)(7) for RIAs
* CAN-SPAM may apply for certain functionality (and the related opt-in / opt-out provisions)
* Disclosure rules such as those required by states like CA which require a license number for insurance advertising - with a special emphasis on clearly disclosing all jurisdictions in which the producers is licensed and / or registered, with reference to specific product lines where required.
* OSJ disclosure for branches
* Form BR for broker dealer branches where a Facebook page or similar page is established specifically for a branch. (Not entirely sure this applies yet, but I am keeping my eye on this one. Probably applies under specifici circumstances)
* US military advertising rules when marketing to members of the armed forces...
* Eventually E-SIGN may apply when someone tries to execute a contract via social media
I hope this helps.
S
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Permalink Reply by Bert Vester on -
Stephen,
I am not very well versed in the way SOx has been incorporated into american laws and regulations, so I might very easily have missed a connection. But I am surprised to see no direct reference to SOx in your list. After all, SOx has for instance been the driver behind many new regulations regarding the protection of confidentiality of client-related data. If I remember correctly, Wall Street & Technology ran a piece on HSBC being fined a few billion dollars last year by the british monetary authority for being sloppy with client data.
I can imagine that servicing clients through cloud technology would cause a heavy focus on just that aspect, i.e. how do I guarantee my most valuable group of private customers that their personal financial data is secure? This is of course not merely a legal issue, but their are some pretty tough playrules that apply here.
Kind regards,
Bert Vester
The Netherlands.
Stephen Selby said:I think the easiest way to attack this question is to take a cue from FINRA RN 10-06. One of the underlying messages was simply that the media does not matter per se, all of the old rules apply. So, perhaps the problem is "merely" listing rules which apply to all electronic communications as a starting point.
* Books and records rules for BDs, RIAs and insurance agents / companies (using SEC Rules 17a(3-4) as a model for electronic retention - RIA electronic record retention rules are very similar.)
* Advertising and Public communications under the same jurisdictions
* Regulation SP (for privacy) and state privacy laws
* Reg FD (heavily influential to FINRA 10-06)
* Intellectual property laws from two perspectives: 1) protecting one's own IP; and 2) ensuring producers don't add copyrighted or otherwise protected material, such as music, to videos etc.
* Suitability rules where applicable
* Anti-Trust
* Supervisory systems: e.g. FINRA 3010, 3012, 3130(b); and SEC Reg 206(4)(7) for RIAs
* CAN-SPAM may apply for certain functionality (and the related opt-in / opt-out provisions)
* Disclosure rules such as those required by states like CA which require a license number for insurance advertising - with a special emphasis on clearly disclosing all jurisdictions in which the producers is licensed and / or registered, with reference to specific product lines where required.
* OSJ disclosure for branches
* Form BR for broker dealer branches where a Facebook page or similar page is established specifically for a branch. (Not entirely sure this applies yet, but I am keeping my eye on this one. Probably applies under specifici circumstances)
* US military advertising rules when marketing to members of the armed forces...
* Eventually E-SIGN may apply when someone tries to execute a contract via social media
I hope this helps.
S
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Permalink Reply by Stephen Selby on
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Two issues to add to the list:
1. "Bashing" of insurance company products - especially by competitors
2. Reg D exempt offerings.
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Permalink Reply by David Rosen on -
Great blog post, Susan! Thanks for pulling all of that together.
Susan Weiner, CFA said:David,
I link to resources in my blog post, "FINRA/SEC compliance issues for bloggers."
Many of the links are to people who participate in this group, so I expect you'll receive many replies to this post.
-
Permalink Reply by David Rosen on
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Fantastic way to kick things off.
Stephen Selby said:I think the easiest way to attack this question is to take a cue from FINRA RN 10-06. One of the underlying messages was simply that the media does not matter per se, all of the old rules apply. So, perhaps the problem is "merely" listing rules which apply to all electronic communications as a starting point.
* Books and records rules for BDs, RIAs and insurance agents / companies (using SEC Rules 17a(3-4) as a model for electronic retention - RIA electronic record retention rules are very similar.)
* Advertising and Public communications under the same jurisdictions
* Regulation SP (for privacy) and state privacy laws
* Reg FD (heavily influential to FINRA 10-06)
* Intellectual property laws from two perspectives: 1) protecting one's own IP; and 2) ensuring producers don't add copyrighted or otherwise protected material, such as music, to videos etc.
* Suitability rules where applicable
* Anti-Trust
* Supervisory systems: e.g. FINRA 3010, 3012, 3130(b); and SEC Reg 206(4)(7) for RIAs
* CAN-SPAM may apply for certain functionality (and the related opt-in / opt-out provisions)
* Disclosure rules such as those required by states like CA which require a license number for insurance advertising - with a special emphasis on clearly disclosing all jurisdictions in which the producers is licensed and / or registered, with reference to specific product lines where required.
* OSJ disclosure for branches
* Form BR for broker dealer branches where a Facebook page or similar page is established specifically for a branch. (Not entirely sure this applies yet, but I am keeping my eye on this one. Probably applies under specifici circumstances)
* US military advertising rules when marketing to members of the armed forces...
* Eventually E-SIGN may apply when someone tries to execute a contract via social media
I hope this helps.
S
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