Presentation: The Power of Social Media: Attracting the Next Generation of Clients Presented by: Trevor Daughney, VP Marketing, Actiance, Inc The most important thing sellers can do for their firm is bring in new clients. There is a major movement of wealth a foot: from Baby Boomers to Millennials. Financial advisers and wealth managers need to shift their focus to a younger generation. To be successful, they need to change how they communicate. In this presentation, you’ll learn that: These young people are increasingly on social networks and stepping away from email. Financial firms need to adjust to this change. Marketers, compliance officers and corporate counsel can overcome the challenges and lead their firms to make the switch. Empowering your sellers to use social media can help close more deals.

1. The power of social media.
Attracting the next generation of clients.
Presented by:
Trevor Daughney
VP Marketing
Actiance, Inc.
@tdaughney

2. •Head of marketing at Actiance
•7 years marketing products and services used by regulated firms
•8years in marketing in energy
Who am I?
@tdaughney

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

4. The challenge.

5. … wealth transfer from the Boomers to their heirs is starting now and will continue over the next 30 to 40 years.
Accenture, Global Private Banking and Wealth Management Survey, 2013
Wealth is shifting to younger generations.
@tdaughney

6. Your clients are getting younger.
Six in 10 advisory firms don't have any strategy in place to court younger clients.
TD Ameritrade, RIA Outlook for the U.S. Economy, Industry & Markets –2014 January 2014
FOR USE WITH MERRILL LYNCH FINANICAL ADVISORS ONLY
@tdaughney

7. 53% of people ages 18-29 say it would be very hard to give up the Internet. Only 28% said the same about landline phones.
Statistics from Pew Research Center,
February 2014
Young people have unplugged the landline.
@tdaughney

8. “Just because you might get a few sales once in a while from cold calling doesn't mean that it's the best way to generate business today.”
Terry Block,
Social Media Marketing Keynote Speaker & Co-Author of KloutMatters
The cold call has been replaced.
@tdaughney

9. 12.5%
An example:
•200 InMails
•158 responded
•33 ask for a proposal
Success rate: 1 out 6
My best with email is 1 out of 8.
Normally only 1 out of 250 take an action as a result of an email!
@tdaughney

10. Consumers are using social for instantaneous communication with family and friends.
Email growth is slowing.
@tdaughney

11. The opportunity.

12. Young people are on social networks.
Over half of LinkedIn users are 25-44 years old.
GlobalWebIndex,
January 2014
@tdaughney

13. There are more people on social than ever before.
Usage spiked 9 years ago, but now social is where people of all ages live.
Pew Research Center,
September 2013
@tdaughney

14. They’re young, smart, & wealthy.
Pew Research Center,
September 2013
Who are they?
@tdaughney

15. “Companies can use social media outlets… to announce key information.”
Securities & Exchange Commission, April 2, 2013
Social is the new news.
@tdaughney

16. The Risks.

17. Biggest challenge? Mitigating risks that concern legal and compliance.
@tdaughney

18. •Feature Control
•Data Leakage
•Incoming Threats
Security
•Regulations
•Corporate Policies
•Legal Hold
Governance
Enablement
•Complexity
•Adoption
•ROI
The Risks.
Anthony Fields fined $150K by the SEC for making fraudulent offers on social media
@tdaughney

19. Compliance Overview For Social Media for Financial Advisors
Record
keeping
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
Work with third party to capture, archive and make e-discoverable all written communications.
Regulation
Definition
Recommendation
@tdaughney

20. Testimonials
Testimonials with “material Connection” are prohibited for Investment Advisors (IAs) and need to be qualified for Registered Representatives (RRs). Recent SEC guidance.
Many firms prohibit “Recommendations” and “Skills” on LinkedIn, “Retweets” on Twitter and “Likes” on Facebook to avoid the appearance of an endorsement.
Suitability
“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.
Regulation
Definition
Recommendation
Compliance Overview For Social Media for Financial Advisors
@tdaughney

21. Advertising
Content standards are the same as other communications. Firms are also responsible for both suitability and recordkeeping of third party content (links, posts).
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.
Regulation
Social Network and Recommendations
Definition
Recommendation
Compliance Overview For Social Media for Financial Advisors
@tdaughney

22. Supervision
Firms must evidence that they are super- vising communications.
Use similar written supervisory procedures already in place. Employ risk-and principle- based principalsfor review.
Limit access to social media unless supervised. Pre-approval of content is required in certain cases. Appropriate training is required.
New FINRA Rule 3110(b)(4) includes supervision of internal communications to comply with FINRA and MSRB rules.
Regulation
Social Network and Recommendations
Definition
Recommendation
Compliance Overview For Social Media for Financial Advisors
@tdaughney

23. You can jump over these hurdles.
@tdaughney

24. The result.

25. Use LinkedIn throughout their day to help make themselves more productive, more relevant, more effective.
A day in the life of a busy financial advisor.
@tdaughney

26. 28%
16%
18%
Software
Info Tech
Others
41%
11%
29%
SF/Bay Area
New York
Toronto
58%
42%
Executives
Others
They build credibility by mining their network and asking for introductions, and listening for “money in motion” events that represent opportunities.
Industry
Location
Job Title
They will be connected.
@tdaughney

27. At a marathon,
a supporter,
became a client.
Use LinkedIn to close more deals.
@tdaughney

28. Thank you!
@tdaughney
Trevor Daughney, VP Marketing
tdaughney@actiance.com