{"id":5147,"date":"2014-12-22T05:46:34","date_gmt":"2014-12-22T13:46:34","guid":{"rendered":"http:\/\/blog.paladinregistry.com\/?p=5147"},"modified":"2014-12-22T05:48:56","modified_gmt":"2014-12-22T13:48:56","slug":"social-media-tips-brokers","status":"publish","type":"post","link":"https:\/\/www.paladinregistry.com\/blog\/advisors\/social-media-tips-brokers\/","title":{"rendered":"Social Media Tips for Brokers"},"content":{"rendered":"<p><a href=\"http:\/\/blog.paladinregistry.com\/wp-content\/uploads\/2014\/12\/brokers-social-media.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"174\" class=\"alignleft size-medium wp-image-5149\" src=\"http:\/\/blog.paladinregistry.com\/wp-content\/uploads\/2014\/12\/brokers-social-media-300x174.jpg\" alt=\"brokers social media\" srcset=\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2014\/12\/brokers-social-media-300x174.jpg 300w, https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2014\/12\/brokers-social-media.jpg 620w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a>Social media can be a powerful tool for brokers and broker dealers.\u00a0 The ability to reach out and instantly interact with current or potential customers is an alluring opportunity for many brokers.\u00a0 Social media can be used positively but there are some steps that brokers should take to ensure that they do not run afoul of <a href=\"http:\/\/www.finra.org\" target=\"_blank\" rel=\"nofollow\">FINRA<\/a> and <a href=\"http:\/\/www.investopedia.com\/terms\/n\/nasd.asp\" target=\"_blank\" rel=\"nofollow\">NASD<\/a> regulations about the use of social media.<\/p>\n<p>Recently, FINRA fined a broker $15,000 for tweets promoting a security that he owned.\u00a0 He did not disclose that he owned the securities in his tweets. \u00a0The lack of including this information may have been a mere oversight on the part of the broker but it still highlights the need for understanding and complying with the rules set in place by FINRA and the NASD in regards to the information contained in social media posts. FINRA treats these sorts of posts like communications through other types of media. \u00a0The FINRA rules include the following requirements for broker communications with the public through social media:<\/p>\n<ul>\n<li>Supervision \u2013 Firms must supervise social media communications (as noted below) under FINRA Rule 2210 and NASD Rule 3010.<\/li>\n<li><a href=\"http:\/\/www.sec.gov\/answers\/suitability.htm\" target=\"_blank\" rel=\"nofollow\">Suitability<\/a> \u2013 Under FINRA Rule 2111, firms must confirm that every &#8220;recommendation&#8221; for a security that is communicated through social media is suitable for every investor to whom it is made.<\/li>\n<li>Recordkeeping \u2013 Firms that communicate through social media must keep records of those communications under FINRA Rule 4510 and Rules 17a-3 and 17a-4 of the Securities Exchange Act of 1934.<\/li>\n<\/ul>\n<p>FINRA has done at least an adequate job in trying to update their rules on communications through social media postings.\u00a0 For instance, FINRA has distinguished between blog posts, which are relatively static, and tweets, which can be more interactive. \u00a0For static communications, such as a blog post, FINRA requires a registered principle of the firm to review and approve the posting before it is publicly posted to a website. \u00a0For interactive communications, such as a tweet, no prior approval is required but, according to FINRA\u2019s rules, \u201cfirms must supervise these interactive electronic communications under NASD Rule 3010 in a manner reasonable designed to ensure that they do not violate the content requirements of FINRA&#8217;s communication rules.&#8221; \u00a0And for third party posts to social media pages such as <a href=\"http:\/\/www.facebook.com\/paladinregistry\" target=\"_blank\" rel=\"nofollow\">Facebook pages <\/a>and blogs, FINRA will not attribute posts to a firm unless the personnel of the firm attributed to the posting or adopted or endorsed the content of the posting.\u00a0 The supervision requirements are those that are the most difficult to consistently maintain and will require the watchful eye of a firm employee to implement.<\/p>\n<p>If a <a href=\"http:\/\/www.paladinregistry.com\/for-advisors\" target=\"_blank\">broker or their firm is considering using social media<\/a> to promote themselves or to more directly interact with customers or potential customers it would be wise to begin to think through a policy that would create guidelines for the use of social media.\u00a0 Clear guidelines will make it much less likely that a stray social media posting draws the ire of FINRA regulators.<\/p>\n<p><em><strong>To learn more about Richard Frankowski, visit <a href=\"http:\/\/www.frankowskifirm.com\/\" target=\"_blank\" rel=\"nofollow\">The Frankowski Firm<\/a><\/strong><\/em>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Social media can be a powerful tool for brokers and broker dealers.\u00a0 The ability to reach out and instantly interact with current or potential customers is an alluring opportunity for many brokers.\u00a0 Social media can be used positively but there are some steps that brokers should take to ensure that they do not run afoul of FINRA and NASD regulations about the use of social media. Recently, FINRA fined a<\/p>\n","protected":false},"author":35,"featured_media":5149,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[325],"tags":[],"class_list":["post-5147","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advisors"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Social Media Tips for Brokers<\/title>\n<meta name=\"description\" content=\"Social media can be a powerful tool for brokers and broker dealers. The ability to instantly interact with current or potential customers is alluring.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/social-media-tips-brokers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Social Media Tips for Brokers\" \/>\n<meta property=\"og:description\" content=\"Social media can be a powerful tool for brokers and broker dealers. The ability to instantly interact with current or potential customers is alluring.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.paladinregistry.com\/blog\/advisors\/social-media-tips-brokers\/\" \/>\n<meta property=\"og:site_name\" content=\"Paladin Registry Blog\" \/>\n<meta property=\"article:published_time\" content=\"2014-12-22T13:46:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2014-12-22T13:48:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2014\/12\/brokers-social-media.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"620\" \/>\n\t<meta property=\"og:image:height\" content=\"360\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Richard Frankowski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@PaladinRegistry\" \/>\n<meta name=\"twitter:site\" content=\"@PaladinRegistry\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Richard Frankowski\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/advisors\/social-media-tips-brokers\/\",\"url\":\"https:\/\/www.paladinregistry.com\/blog\/advisors\/social-media-tips-brokers\/\",\"name\":\"Social Media Tips for Brokers\",\"isPartOf\":{\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/advisors\/social-media-tips-brokers\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/advisors\/social-media-tips-brokers\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.paladinregistry.com\/blog\/wp-content\/uploads\/2014\/12\/brokers-social-media.jpg\",\"datePublished\":\"2014-12-22T13:46:34+00:00\",\"dateModified\":\"2014-12-22T13:48:56+00:00\",\"author\":{\"@id\":\"https:\/\/www.paladinregistry.com\/blog\/#\/schema\/person\/43137d13ff719c8e5ff62b62530d7c26\"},\"description\":\"Social media can be a powerful tool for brokers and broker dealers. 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