Safely Embracing the Power of Social Media
Course Description: A public signal that the SEC Office of Compliance Inspections and Examinations is highly focused on (or is serious about) social media is its National Examination Risk Alert: Investment Adviser Use of Social Media, which was released in January 2012 in conjunction with an SEC proceeding that charged an adviser in a social media scam.
Friends and profiles, professional networking, micro-blogging, Facebook, LinkedIn and Twitter must now be addressed in your compliance program. Remember, potential clients often check out social media sites to vet an investment adviser. Moreover, the SEC has asked advisers for documentation on how they use social-media sites such as Facebook, Twitter, LinkedIn, YouTube and Flickr, among others – as well as blogs. Examiners are also gathering more information about advisers' policies that govern how their employees may – or may not – use social media. In addition, the SEC has requested information about how advisory firms retain records of its employees' use of social media. This includes non-business use of social media and networking sites.
Are your employees using firm premises and equipment to communicate with clients in the social networking environment? Is e-marketing being conducted? What about the confidentiality of firm and client information? This seminar will bring you up to speed on these communication portals, the risks they pose and regulators’ expectations regarding oversight and supervision
After completing this course you should be able to:
- Define the various social media (i.e. Facebook, LinkedIn, Twitter, etc.) and their uses by firm employees
- List the SEC and FINRA requirements pertaining to advertising, recordkeeping, oversight and supervision
- Identify the risks posed by the use of social networking sites
- Develop and apply effective compliance procedures to regularly monitor and supervise use of social media sites by employees
- Defend its firm’s social media policies and procedures during an SEC examination
Chief Compliance Officers
Compliance Staff at all levels
Suggested Skill Level: Intermediate
Instructional Method: Group Internet-Based
Pre-requisites for participation: No prerequisites are required. However, attendees can benefit by reviewing the Investment Advisers Act of 1940 to become familiar with the structure and terms.
Advance Preparation: None
Continuing Education Credits:
NRS Continuing Education Guide
Recommended CPE Credit: 2 in the Regulatory Ethics field of study
Recommended IACCP CE Credit: 2