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FINRA spot-checking firms' social media activities for compliance

On Monday June 17, FINRA posted a notice on their website describing targeted social media audits they will be performing with some member firms. In this letter, which was delivered to select member-organizations for spot-checking, FINRA requests details about the firm’s social media accounts, who manages those accounts, as well as information about the firm’s social media policy and process.
Notable in this announcement from FINRA is that they are specifically reviewing the activities of top producing registered representatives. For firms that have primarily focused on social media compliance at a brand level and attempted to block advisor use, it may be an added challenge to identify social pages and activity for these reps. Organizations are requested to report on the top performer’s activity from February 4, 2013 through May 4, 2013 as well as the sales and commissions that each rep brought in during that period.
Audits like these are a great example for why an enterprise social media platform can be a valuable tool for regulated firms. With a solution like Hearsay Social in place, organizations have most of the requested information and reports at their fingertips. With a few clicks of a mouse, respondents to this spot-check should be able to pull a report showing the social media assets, users, and activity for a firm. In addition to information about social media usage and policies, FINRA requests “an explanation of the measures that your firm has adopted to monitor compliance with the firm’s social media policies,” a process that is simple to demonstrate with Hearsay Social as a system for continuously monitoring activity, archiving, and supporting compliant social-media usage.
You can read the full FINRA notice here.
If you are a Hearsay Social customer, please contact your customer success representative for support in the spot-check process.