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Improving efficiency and protection with new social media compliance enhancements

As head of legal and compliance at Hearsay Social, it is important to me that we continually provide cutting-edge improvements to the Hearsay Social platform to make the jobs of our compliance and supervision users easier.
Today we announced new enhancements to our compliance capabilities, and I want to share some of the key focus areas for these enhancements.

Streamlining the review and publishing process for static content

Request-Changes-to-Profile-Teal_NEW (1)FINRA sees social media profiles as “static” content and categorizes this content as “advertisements,” meaning profiles require pre-approval by a firm’s principal before they are published. Because we know this review process is a heavily used area of the Hearsay Social platform, we’ve created a new streamlined social profile review, approval, and publishing solution to make it even easier and more efficient for financial professionals to publish compliant profiles.
Many of our customers in highly regulated industries are already using this new profile solution, and I’m happy to report we’ve received extremely positive feedback. With one of the first implementations of the new LinkedIn API, Hearsay Social can now automatically publish approved profile content directly to the network. For supervision professionals, this new functionality ensures public profiles match what they have approved, minimizing risk for the organization and easing compliance for profiles. Plus, it saves advisors and agents the time and headache of having to update their profile manually after new content has been approved.

More pre-approval functionality for dynamic content

We heard from some of our customers that they wanted a better way to pre-approve dynamic social activity from advisors and agents. With recent enhancements, Hearsay Social now lets supervisors pre-approve social engagements such as Likes or comments before they go live on the social networks.

Archive support for photos

An effective social business program is not just text-based. In order to help our customers take advantage of all types of social content, we now provide the ability for firms to archive photos posted by agents and advisors through the platform. This ensures they’re capturing this type of activity in their records, even if it is deleted or removed from the social network at a later date.

Increasing context for improved efficiency

In addition to delivering a new static profile solution, we have added more note and attachment fields so supervision users can share comments or context with each other or advisors during the supervision process. These new fields are also pushed to the archive systems so that complete context is available upon record review. In addition, Hearsay Social now provides enhanced searching and sorting to supervision users so that they can be even more efficient when reviewing or auditing social business activities of agents and advisors.
We hope these enhancements will make our customers’ jobs easier and their social business programs more effective and compliant. Please feel free to reach out to me directly if you’d like more information about the new solutions above or other functionality of the Hearsay Social platform.
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#HSonAir Employee Spotlight Series: Interview with Garland Trice of Hearsay Social

Garland Trice, Hearsay SocialIn episode 15 of Hearsay Social On the Air we continue our employee spotlight series by introducing Garland Trice (Software Engineer, Hearsay Social), who shares how the engineering team works collaboratively with our customer success team and customers to consistently improve upon the Hearsay Social platform.
In the podcast, we mention our “A Year in the Life” video embedded below, so be sure to check it out, listen to the podcast below, and join the conversation on Twitter with @VictorGaxiola and @ronnykerr using hashtag #HSonAir!
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Recent action by SEC – What it means for Compliance Officers

Last Wednesday the U.S. Securities and Exchange Commission (SEC) charged Anthony Fields, an Illinois-based independent advisor, with offering more than $500 billion in fictitious securities to his LinkedIn connections. (The SEC simultaneously issued three Risk Alerts. More on those can be found here.)

According to the SEC, Fields made “guarantees” to potential investors and tried to sell them specific financial products via LinkedIn. He also provided false and misleading information to the public concerning his company’s assets, clients, and operations. He projected himself as a FINRA-registered broker-dealer, even though he wasn’t licensed.
This was a case of attempted fraud, pure and simple: the man was not registered with the SEC, and the securities he attempted to sell did not exist.
Robert B. Kaplan, co-chief of the SEC Enforcement Division’s Asset Management Unit, released a statement saying “Fraudsters are quick to adapt to new technologies to exploit them for unlawful purposes.” Some reporters misinterpreted that statement and sounded the alarms on social media—citing new platforms of communication as breading grounds for consumer exploitation.
Let us be clear. New channels of communication are not the problem. Consumers/investors can’t be defrauded without a person behind the deceit. And fraudsters will find a way to approach their victims, if not via social media, then through in-person meetings, phone calls, email, or any other mode of communication.
So, even though social media isn’t the cause of the fraud, what can consumers can do to protect themselves? Understanding any platform that one uses, implementing appropriate privacy controls, and using the same common sense and intuition that we would for in face-to-face interactions are key.
Key Takeaways
Financial institutions can also protect consumers by closely monitoring advisor use of social media. In the case of enterprise-scale use of social media, technology is crucial to preventing infractions of SEC and FINRA regulations and preventing fraud. Equally important, social media empowers advisors to communicate with consumers through a new productivity tool.
The Hearsay Social Compliance Module is designed to prevent this type of incident for our customers. If Fields had worked for a Hearsay Social customer, his “guarantees” to potential investors would have been picked up as potential infractions and the specific product recommendations would have been flagged in our Supervision and Real-time Remediation features. And if Fields had projected himself as working for a Hearsay Social customer but didn’t, our patent-pending Rogue Page Finder would have picked up his profile.
The SEC and FINRA have made it it clear that they will not tolerate fraud, no matter whether it occurs over the phone, over email, or over social media. Compliance Officers should make sure they are deploying an enterprise-wide compliance solution soon.