Presentation: Social Media for Registered Investment Advisers Presented by: Debra Tobin, Compliance Manager, Financial Engines Registered investment advisers are confronted with a myriad of compliance considerations with respect to the use of social media. This presentation will identify some of those considerations with suggestions for addressing them.

1. Social Media
for Registered Investment Advisers
Deb Tobin, Compliance Manager
Financial Engines Advisors L.L.C.
March 6, 2014
For overview purposes only. Information provided for evaluation and informational purposes only, and does not constitute and should not be construed as
operational, inivestment, legal or tax advice. Financial Engines Advisors L.L.C. is a federally registered investment advisor and wholly owned subsidiary of
Financial Engines, Inc. Financial Engines does not guarantee results and past performance is no guarantee of future results. Financial Engines disclaims any
liability arising from your use of this information. Views expressed are as of today’s date and may change based on market and other conditions. Unless
otherwise noted, the opinions provided are those of the speaker/author and not necessarily those of FE. CPY11006

2. 2
Agenda
Key Takeaways
RIA’s – what’s all the fuss about?
Investment Adviser Advertising Guidelines
SEC OCIE Risk Alert
What will it take to make it happen?
Effective Governance
Where do you want to go?
Train….. train…. and train again
We’ve arrived….. Now what?

3. 3
Key Takeaways
For marketing people:
• Figure out what matters
to Compliance
• Learn the language
• Communicate, early and
often
For compliance people:
• Figure out what matters
to Marketing
• Learn the language
• Communicate, early and
often

4. 4
RIA’s – what’s all the fuss about?
Investment Advisers Act
• Rule 206(4)-1 – The Advertising Rule
SEC No Action Letters
• Clover Capital Management, Inc., October 28, 1986
FINRA guidance
• Regulatory Notice 10-06, Social Media Websites
• Regulatory Notice 11-39, Social Media Websites and Use of Personal
Devices for Business Communications

5. 5
Investment Adviser Advertising Guidelines
• No false or misleading statements
• Do not make promises we cannot keep
• Avoid absolutes
• Testimonials are generally prohibited
• Performance information
• Cite sources
• Use trademarks and service marks properly

6. 6
SEC OCIE Risk Alert: Investment Adviser Use
of Social Media, January 2013
Key Takeaways
Investment advisers that use or permit the use of social media by their
representatives, solicitors and/or third parties should consider periodically
evaluating the effectiveness of their compliance program as it relates to social
media. Factors that might be considered include usage guidelines, content
standards, sufficient monitoring, approval of content, training, etc. Particular
attention should be paid to third party content (if permitted) and recordkeeping
responsibilities.
Highlights
• Usage guidelines  Content standards & approval
• Monitoring & frequency  Firm resources
• Training  Criteria for approving participation
• Certification  Functionality
• Personal/Professional sites  Information security
• Enterprise-wide sites

7. 7
What will it take to make it happen?
Crawl … Walk …. Run!
Consider conducting a Risk Assessment
• Current exposure
• Firm level
• Employee/rep level
• Tools
• Archiving
• Monitoring
• Resources
• Training

8. 8
Effective Governance
Policy Creation and Management
• Compliance, Legal, HR, Business, Technology
• Committee structure
Structure
• Focused Social Media Policy
• Combined SM Policy with Electronic Communications Policy
• Combined SM Policy with HR Code of Conduct Policy
Create a Social Media Strategy

9. 9
Where do you want to go?
Where are your customers?
• Blogs
• LinkedIn
• Twitter
• YouTube
• Facebook
General features
• Profiles
• Email, IM, Chat
• Recommendations, Endorsements, Liking

10. 10
Train….train…..and train again
Who do we train?
• Access persons
• Licensed reps
• Managers or supervisors
• Compliance reviewers
• All employees
How often do we train?
• Annual Compliance Awareness
• Social Media training
Other approaches
• Attestations
• Certifications

11. 11
You’ve arrived!
Monitor
• Technology changes
• New site features or enhancements
• New sites
Regulatory updates
• SEC guidance
• FINRA guidance
Re-assess effectiveness and potential gaps
Adjust approach
Train again
Now what?

12. 12
Key Takeaways
• Figure out what matters to one another
• Learn the other’s language
• Communicate, early and often

13. 13
Questions

14. 14
About Financial Engines
Cerulli Associates, The Cerulli Edge—Retirement Edition, 3Q 2013; data as of September 30, 2013.
Financial Engines, America’s largest defined contribution managed account provider*, is
dedicated to making high-quality retirement help available to everyone — regardless of
how much money they have. We’re proudly independent, which means we don’t sell
products or earn commissions based on our investment recommendations. The
companies that choose to work with us offer our services to their workers as a valuable
employee benefit.
Co-founded in 1996 by Nobel Prize-winning economist Bill Sharpe, Financial Engines
currently offers personalized advice for saving, investing and living in retirement to
millions of workers nationwide. Our strong ties with employers give us a unique
opportunity to form direct relationships with their employees.
Some people love the challenge of investing. Others prefer to focus their time elsewhere,
but everyone needs to plan for retirement. Whatever their interest level in investing,
Financial Engines combines cutting-edge technology and a personal, human touch to
help all types of investors reach their retirement goals. For more information, visit
www.financialengines.com.