We receive a lot of questions around compliance – specifically leveraging social media under FINRA and SEC regulatory rules and guidelines. We also invest a lot of energy in educating and raising awareness on this topic through articles, webinars and other efforts.
Recent efforts include:
Our first and second most popular blog posts
- Guest blogger Russ Thornton, a Georgia-based advisor, shared his daily routine for integrating social media into his practice
- Arkovi partner and guest blogger Joe Polidoro, Triplestop LLC, surveyed the SEC landscape for advisors engaging in social media. The Triplestop compliance chart is an outstanding reference guide.
Webinars addressing key topics
…including strategy, tactics and compliance. Most recently Chris Winn, Advisor Assist, guest hosted our August webinar and covered the nuts and bolts of setting up social media policies and specific compliance guidelines for financial advisors.
A survey of the social media archiving landscape in an article published by Advisor Perspectives.
Now for the specifics on Arkovi and FINRA, SEC regulations – those that impact advertising, client correspondence and more generally electronic communications with the public.
Meeting FINRA & SEC Rules Using Arkovi for Social Media
Arkovi has been designed to assist FINRA-regulated clients in meeting their supervisory obligation to review correspondence under NASD Rule 3010. This is accomplished through our use of a key word lexicon to identify and flag certain social media communications for your targeted correspondence review. Arkovi also incorporates hold and release functionality for the social media accounts of associated persons that are set-up in the system. This enables the your business to meet its advertisement pre-review and approval obligation under NASD Rule 2210 (b).
You can also use Arkovi as a surveillance tool, monitoring any use of its associated person’s social media accounts wherever the account is accessed. Since Arkovi captures data directly from the social media platforms (LinkedIn, Facebook and Twitter), the information captured is not limited to content that has been placed through your officially distributed technology hardware, ie. company-issued computers, PDAs or cell phones. Additionally, via our RSS integrator, this broadens your archiving capabilities to blogs, blog comments and numerous other social media and web-based activity feeds and searches.
This approach allows you to identify non-compliance with any prohibited activities in their social media policy, such as unapproved updates to profiles or recommendations (testimonials) on LinkedIn that occurred outside of the broker/dealer’s distributed technology. In addition, this surveillance capability helps to prevent regulatory “surprises” in instances where a diligent FINRA or SEC examiner has captured unapproved social media communications that were not placed through the broker/dealer through his/her own Google search of the social media sites of the firm’s associated persons.
Arkovi also satisfies the requirements for indexing, time-stamping and verification functionality found in SEC Rule 17a-4. Through these features, paired with our data export on demand capabilities, we integrate our archives into our customer’s WORM storage environments through both automatic and manual options. By default this method opens up the archive data to expansive reporting opportunities for our customers.
Perhaps most compelling to this discussion is not what you can monitor that is prohibited, but the fact that Arkovi enables you to empower your business to leverage social media. The shift is present to move from a reactive, prohibition-based environment to one that is proactive and consultative to your business and associated persons. Through this new set of lenses – your business can construct a meaningful social media policy, design a strategy and tactics to advocate your brand; and to enable your constituency to engage with customers, peers and prospects.
These actions result not only in building new awareness to your brand and business, but also to extending and constructing new relationships as well as new revenue opportunities. Social media is here and not just a fad. Using Arkovi, you can bring the power of “social” to the forefront of your business.