Presentation: Leveraging Social Business Amid The Changing Regulatory Landscape Presented by: Joanna Belbey, Social Media and Compliance Specialist, Actiance, Inc & Victor Gaxiola, Subject Matter Expert - Social Media, Actiance, Inc Learn how the latest forms of electronic communications can help your firm become a social business. Hear case studies that show how social media is being used by Financial Advisors and others to build awareness, attract leads and generate revenues. Learn about the evolving regulatory landscape and gain an understanding how your firm can use social tools effectively while complying with these rules and regulations. www.bdionline.com

1. Leveraging Social Media Amid the Changing
Regulatory Landscape
Joanna Belbey- Social Media and Compliance Specialist
Victor Gaxiola- Subject Matter Expert, Social Media
@belbey @VictorGaxiola #BDI1
Confidential and Proprietary © 2012, Actiance, Inc. All rights reserved. Actiance and the Actiance logo are trademarks of Actiance, Inc.

2. #TeamActiance
Facebook.com/Joanna.Belbey
Linkedin.com/in/belbey
@Belbey
About.me/JoannaBelbey
Facebook.com/VMGaxiola
Linkedin.com/in/victorgaxiola
@VictorGaxiola
About.me/VictorGaxiola
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@belbey @victorgaxiola #BDI1

3. About Actiance
We are the Market Leader
Compliance
Social
10 of 10
2 of 3
Top US Banks
Global Wealth Managers
8 of 10
60,000+
Top European Banks
Finance Professionals on Socialite
5 of 5
13M+
Top Canadian Banks
Social Network Connections
76%
North American
Financial Services Market
Global Operations
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Key Partners

4. @
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@belbey @victorgaxiola #BDI1

5. Public
Instant
Messaging
Industry
Networks
Social Networks
Collaboration
Unified
Communication
Wikis
Future
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@belbey @victorgaxiola #BDI1
Web
Today’s social
business
can’t use
just one
collaborative
technology
to keep its
employees
connected
– it needs to
use them all.

6. Leads to Several Challenges
Security
• Feature Control
• Data Leakage
• Incoming
Threats
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Governance
• Regulations
• Corporate
Policies
• Legal Hold
@belbey @victorgaxiola #BDI1
Enablement
• Complexity
• Adoption
• ROI

7. Compliance Overview For Social Media for Financial Advisors
Regulation
Record
keeping
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Definition
Preserve records of written
business communications for
specific time periods. (If you
write it out, it’s “written”.)
LinkedIn - Updates, InMail;
Twitter - Tweets, Direct
Messages; Facebook – Posts,
Messages. Regulators only are
interested in business
communications. Includes Third
Party content. Includes personal
devices, as content, not source,
is determinative
Recommendation
Work with third party to capture,
archive and make e-discoverable all
written communications. Many firms
prohibit retweets to avoid
appearance of “adoption and
entanglement” with resulting
recordkeeping and advertising
requirements.
@belbey @victorgaxiola #BDI1

8. Compliance Overview For Social Media for Financial Advisors
Regulation
Definition
Recommendation
Testimonials
Many firms prohibit
“Recommendations” and “Skills” on
LinkedIn, “Retweets” on Twitter and
“Likes” on Facebook to avoid the
appearance of an endorsement.
Suitability
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Testimonials are prohibited for
Investment Advisors (IAs) and
need to be qualified for
Registered Representatives
(RRs).
“Know Your Customer”.
Recommendations must be
suitable for every investor.
Most firms prohibit product
recommendations and investment
strategies unless preapproved by a
registered principle of the firm.
@belbey @victorgaxiola #BDI1

9. Compliance Overview For Social Media for Financial Advisors
Regulation
Advertising
Definition
Social Network and Recommendations
Recommendation
Content standards are
the same as other
communications. Firms
are also responsible for
both suitability and
recordkeeping of third
party content (links,
posts).
Firms must evidence
Supervision that they are
supervising
communications.
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Most firms prohibit retweets, favorites and likes
to avoid appearance of “adoption and
entanglement”. Static content, such as a
LinkedIn Profile that contains more than
business card information, is an advertisement
and requires pre-approval. Interactive
communications do not require pre-approval.
LinkedIn, Facebook and Twitter have both.
Supervision, recordkeeping apply.
Use similar written supervisory procedures
already in place. Employ risk based principals for
review. Limit access to social media unless
supervised. Pre-approval of content is required
in certain cases. Appropriate training is required.
@belbey @victorgaxiola #BDI1

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@belbey @victorgaxiola #BDI1

11. Case Study: Wealth Management Firm (NJ)
•
•
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LinkedIn – read only
– Listening is key, watching connections who matter
– Use to see “money in motion” events
Real results
– LinkedIn Connection retirement status change = $2.75m
account acquisition
– Job Change noticed on Status Update = 401k rollover
– FA obtains 400 new prospects in Energy market
– New commercial account opportunity through
colleague’s LinkedIn connections
@belbey @victorgaxiola #BDI1

12. Case Study: RW Baird
•
Situation
– LinkedIn already available to 1200+
– Veteran Advisers, tech savvy
– Authentic content
•
Real results
– @MaryS_rwbaird
• 51 followers
• 93 Tweets (at the time)
• $1m prospect, later closed
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@belbey @victorgaxiola #BDI1

13. Drive customer loyalty
A friend
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sees an owie,
@belbey @victorgaxiola #BDI1
and sends
a cure.

14. Leverage your connections
In a company
town,
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building a
network,
@belbey @victorgaxiola #BDI1
closes business
for you.

15. Close new business
At a marathon,
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a supporter,
@belbey @victorgaxiola #BDI1
became a client.

16. And finally, will Social Media replace the cold call?
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158
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17. Thanks! Contact Information
•
•
•
•
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info@actiance.com
@Actiance
@belbey @victorgaxiola
Further reading:
– FINRA 10-06, 11-39 Matrix
– FINRA Social Media Handbook
– Belbey Blogs: FINRA Spot
Checks Call for Social Planning