FINRA’s notice on social networking sites – what it means for your firm

FINRA has recently issued guidance and Q&A on registered reps use of social networking web sites, blogs and other forms of social media. Use of sites such as Facebook, Twitter and LinkedIn for business purposes by reps falls under FINRA’s rules on communications with the public and requires policies and procedures as they apply to each firm’s recordkeeping, suitability and supervision responsibilities. A firm’s WSP should be updated accordingly, including procedures for monitoring and reviewing e-mails, content and blogs via social media.

Also see FINRA Regulatory Notice 07-59.

About Alex Akesson

Alex has been specializing in hedge fund and alternative investment news since April 2006. Working mainly in research and manager interviews, she has published breaking news on the hedge fund industry on her blog, as well as several industry publications. Her access to hedge fund managers gives her insight into news stories as well, and the ability to track press releases and other breaking news in real time.
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One Response to FINRA’s notice on social networking sites – what it means for your firm

  1. Chad Bockius says:

    Firms interested in learning more should check out the Companion Guide to FINRA Social Networking Compliance http://bit.ly/8xT73y. It picks up where Notice 10-06 leaves off, offering additional detail on social networking considerations and a checklist of requirements for choosing a social networking compliance vendor.

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