Social Media and Compliance

Why is social media use for UK financial services professionals so critical? The short answer: Social media is becoming table stakes for both customers and prospects who are already using it and seeking to connect with a service provider online during their research journey.
A recent Capgemini/RBC World Wealth Report stated 70% of clients would use social media as a channel by 2017. Another 90% of clients want tailored news and research shared via digital channels. Of all wealth advisers in the UK, 57% are active on at least one social media outlet. This is only set to increase.
However, according to a social media survey by PAM Insight in 2014, compliance and regulatory concerns still present one of the biggest barriers to social media adoption among UK advisers. Another survey by Intelliflo showed that only a quarter of UK-based financial firms have introduced formal policies setting out social media best practices.
To assist with this challenge, and in the interest of creating an on-going dialogue within the industry and with regulators, The Financial Services Forum partnered with Hearsay Social to create an industry working group for the purpose of providing continual ideas, practical tips, and best practices for implementing social media programs in a compliant manner.
While social media can help generate business, provide a better understanding of clients’ needs, and attract forward-thinking professionals to a firm, the question remains: how can companies protect themselves on social media yet still use the digital medium effectively?
In this paper we turn these ideas into practical action by looking at four overarching compliance pillars: Policy, Training, Supervision, and Record Keeping. Together, we hope to provide a starting point, building on the lessons learned at different points along the social media spectrum.
In the end, we hope these guidelines will allow compliance and marketing teams to do what they do best: uphold the firm’s reputation and keep its employees accountable, transparent, and driving new business.
To view the full report, please click the download button for a PDF version.