Brokers face stringent social media rules
Friday 19 August 2011 - by Andrew Hickley & Will Henley
Securities brokers in the US will have to catalogue all contacts with clients using social media, such as Twitter and LinkedIn, under sweeping new guidelines.
This training should ensure that employees are aware that messages are "retained, retrievable and supervised", the eight-page document says.
Firms are advised to distinguish between employees' business and personal communications by using different applications for either, Finra says.
Brokers may consider all communications with clients as being business-based, instead of purely social, it adds.
While all messages must be recorded, the firm will not be under an obligation to review every communication. However, it will be required to act where a "red flag" appears to suggest an employee is not following its social media policy.
The guidelines do not ban employees from taking part in "unscripted" conversations, such as instant messaging, with clients. The employee will however have to alert their supervisor of the exchange afterwards.
So-called "static" posts will require supervisory approval, as the item could be considered as advertising, Finra adds.
Send us your thoughts (in strict confidence) or submit an article in response:
|Login||Register||Most read||Most commented|
Will markets in 2012 have a tougher time than 2011?