Thinking about sharing a link to a resource on a third-party site? First, do an extensive review of the site to make sure it provides only credible information.
Investment firms can work with social media influencers and referral programs. But they have to be particularly rigorous in screening influencers. Before working with an influencer, review their existing social content. Check for anything that violates compliance requirements or creates reputational risk.
Once you establish a relationship with an influencer, you need to make sure they are well trained. Put supervisory procedures in place. You also need to maintain records of their communications related to your business. That includes public comments as well as dms.
Content Compliance Before Publishing
This is a lot more oversight than many influencers usually get. So, they may bristle at these requirements. If they’re not willing to work with you to follow finra guidelines, they are not a good fit for your business. According to finra, social media influencers’ posts and comments need to be labeled as ads. Regulatory notice 17-18 states.
“firms should clearly business email list identify as advertisements any communications that take the form of comments or posts by influencers and include the broker-dealer’s name as well as any other information required for compliance with rule 2210.”
social media may seem like a casual platform for interacting with prospective clients. But social media content still needs to follow the content standards in finra rule 2210 on communications with the public.
Create a Content Library
You cannot make false or exaggerated claims. You can’t predict or project performance. What are the consequences of finra violations on social media? Finra social media violations are dealt with through an enforcement process.
Disciplinary action can Calling List Uk range from the issuance of a cautionary action all the way up to being barred from the brokerage industry. The latter applies only in cases of serious misconduct. Other sanctions include fines and suspensions. Here are the potential individual sanctions for approval, review, recordkeeping, and filing violations.
Fiera violation sanctions, continued. Of course, as noted above, these are not the only potential ways to violate finra regulations on social media. Here’s a real-world disciplinary example.
