Financial compliance can hinder communicating online with customers through social media as it carries its own regulative and compliance considerations. Is social media thought of advertising? that laws dictate what establishments will and can’t say? The answers aren’t cut and dried, however, understanding the compliance framework around social media could be an essential first step toward lowering your organization’s risk.
Regulatory organizations like Finance and Health face stringent and very costs deterrents when communicating with customers through social media channels. The solution to take serious restrictive and compliance considerations since they fall within the FINRA guidelines. These rules dictate whether social media is a form of advertising and dictate stringent rules on what the organizations can say. This can be a deterrent for their institutions because the regulatory bodies aren’t’ as cut and dry on how most businesses have a clear understanding of what they can and cannot say over social media.
That said, this can be easily mitigated by understanding the compliance framework. Then choosing the right partners that have built social media platforms from the ground up with compliance in mind. Therefore lowering or completely mitigating the risk that financial and health organizations need to worry about when taking the leap into using social media. I personally have been working with these institutions from 2010 helping them understand both regulations as it pertains to social media. Including the evaluation of platforms that mitigate or eliminate the risk institutions take when activating their organization’s on social media. This not only includes what you’re able to say but also what you include in your social profiles.
In a closed-door setting, financial advisors could skirt around certain regulations, but on social media, that is not the case. As a bit of humor, the only person that can get away with such things, a friend and follower of mine Warren G aka The Regulator. All jokes aside, advisors are bound by several financial compliance regulations:
Gramm-Leach-Bliley Act: This law requires the safety of purchaser information. You must ensure that confidential account facts aren’t uncovered when trying to provide customer support or assist with products. Also, insurance disclosures need to appear if the bank mentions insurance merchandise in its posts.
Reg Z requirement applies to all commercial messages that promote credit score transactions. Further warning and adequate training are essential when marketing hobby quotes or precise credit terms via social media, for the reason that employees’ interplay with consumers about credit score products also can trigger particular disclosures. And if the communication of this kind is sent, you must preserve a record of the message for 2 years.
Solutions To Mitigate Risk
As mentioned above, there are a number of vendors that help mitigate risk by following all of the FINRA rules from storing messages on a secure server, flagging and deleting posts before they go live, or even providing compliant only messaging fro advisors to share on social media. I have evaluated over 10 social media platforms that claim to do this, which you can evaluate yourself using G2Crowd, but only one stands out as a social media platform that was built from the ground up through its features and partnerships specifically for FINRA and HIPPA regulated organization. Its competitors seem to have been built for marketing-first which can present major flaws as they move into the compliance arena. It is for that reason, I can only recommend Grapevine6 as the leader in the industry as the best solution for mitigating risks to regulatory and compliance-driven organizations. I have no affiliation with this company and recommend you visit G2Crowd to evaluate them for yourselves.