April 21, 2010 PLANADVISOR.com
Even with clarity from FINRA, broker/dealers have yet to christen social networking.

Retirement plan advisers, like the financial advisory industry as a whole, have shown some hesitant enthusiasm about social media, whether by simply starting a blog about 401(k)s or using LinkedIn to fish for clients. However, the elephant in the room is that it’s not completely clear to advisers whether their social media activity is in compliance with their firms or broker/dealers. A recent LederMark Communications survey of financial service professionals (most of which were financial advisers) found more than half (58%) said compliance concerns are an impediment that keeps them from making full use of social media for their businesses. Furthermore, 39% said company policy precludes their participation.

The Financial Industry Regulatory Authority (FINRA) released guidelines earlier this year for broker/dealer firms who want to participate in social media and the Securities and Exchange Commission (SEC) has been pretty mute about the issue (see “Think before You Tweet”). But even with FINRA’s guidance, advisers have to deal with the compliance of their broker/dealers.

Read More from Advisers Meet Compliance’s Hurdles to Using Social Media at PLANADVISOR.com.