Creating and implementing a winning marketing strategy can be a tough chore for any type of business, but it is arguably the most challenging for those firms engaged in financial services. (more…)
Financial advisors on LinkedIn must make certain their messages comply with Federal regulations. Most of us can go through our day without giving a second thought to the messages we receive and send on LinkedIn. We send birthday wishes, congratulate others on their recent promotion and share content we’ve created and content we’ve curated. Added to this mixture of messages we occasionally send something a bit more sales oriented. Maybe we’ve found a prospect in a LinkedIn Group and we want to tell them about our product, or the services we offer. No worries, that’s what LinkedIn is for, right? (more…)
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Regulators realize it’s so easy to get carried away on social media. The concept of putting out an idea that can be viewed and shared by hundreds, maybe thousands, is exciting.
Recently, the U.S. Securities and Exchange Commission (SEC) issued a guidance to help financial advisors determine when it is appropriate to use social media. The guidance helps to clarify Section 206(4)-1(a)(1) of the Investment Advisors Act of 1940. This section of the rule makes it unlawful to publish, circulate, or distribute any advertisement that refers, direct or indirectly, to any testimonial of any kind concerning the advisor or concerning any advice, analysis, report, or other service rendered by the advisor (i.e. the Testimonial Rule.) Even though the SEC has not specifically defined “testimonial,” they have interpreted it to mean “a statement of a client's experience with, or endorsement of, an investment advisor.” According to Institutional Asset Manager, whether public commentary on a social media site is a testimonial depends upon all of the facts and circumstances surrounding the particular situation. (more…)
The Securities and Exchange Commission (SEC) says it's okay for companies to use social media, such as Facebook and Twitter, to announce important information and still comply with the Regulations Fair Disclosure. A Recent ruling confirms that Regulation Fair Disclosure applies to social media used by companies the same way it applies to company websites. In 2008, the SEC clarified that companies can use websites to reach investors if the investors have been informed that important information is transmitted via website. (more…)
