Social Media Compliance in Financial Services Firms:
Policy Setting, Implementation and Monitoring
April 10, 2012
Registration Fee: US$895.00 Register Location Instructors
Many classes sell out; we suggest registering at least one week in advance to ensure availability.
Beginner/Intermediate Level, 7 CPE Credits
Instructors: Margaret R.A. Paradis, Esq. and Thomas Bookwalter
Hours: 9:00 am - 5:00 pm; Registration/Breakfast begins at 8:30 am
Location: Bayards, One Hanover Square, NYC (Financial District)
The Financial Services Industry faces urgent pressure to integrate social media into its outreach to the market and investors. The investors and markets have moved ahead on the net to embrace the new media. Firms that are there will be able to grow in this new space, edging out the invisible firms. This program provides the framework and substance that a firm needs to determine the right approach for its unique plan.
This program would be useful for executives with responsibilities for marketing, IT, risk management, legal, compliance and other areas focused on the firm’s outreach. Practical and up to the minute guidance will be offered covering the available options in terms of the media, technology and regulatory standards.
Session I: Defining the Right Policy
Whether your firm chooses to use social media or not, regulators are clear that you need a written policy with respect to social media and your firm.
- There are several alternatives to consider in setting the policy ranging from a red to a green light depending on your firm’s business
- The right option for a firm depends on consideration of certain fundamental features, such as investor class, nature of products and services, sales force structure, system resources and culture
- We will analyze how these and other features drive the terms of the right policy
- We will also explain the potential consequences/costs of different policies so you are aware before committing to a path
Session II: Launch of the Policy
Writing a policy is only part of the battle. Not only must the firm have a policy, but employees must know that policy and the firm must be able to prove to investigators that you have communicated the policy and that employees have acknowledged that they received the policy and your guidelines for use.
- Several areas within the firm must work together to successfully implement the new policy and realize the business goals
- This team approach will involve new alliances using new technology and procedures. We will define the appropriate baseline standards for recordkeeping, and surveillance to reflect current developments.
- The potential for very public success as well as failure of the policy makes effective internal organization essential
- We explain the different critical roles for the marketing/sales, risk management, IT, HR, legal, and compliance areas.
- We focus on the essential role of available technology and features of the social media not only in getting out your message, but in managing the risk
- We will integrate the SEC, FINRA and other regulatory standards as they apply to various types of firms (BD, IA, IC, HF) that must be reflected in the rollout
Session III: Ongoing Monitoring/Surveillance
- An essential part of a successful program is an effective procedure for monitoring the social media activities.
- Monitoring is aimed at two goals: (1) measuring success of your strategy and (2) compliance with the risk management terms
- We will discuss the latest tools available to assist in your review as well as the types of forensic testing and other compliance reviews you should adopt to follow regulatory and other best practices.