Financial Advisor Marketing & Technology

Marketing & Technology For Independent Financial Advisors

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FINRA Notice On Social Media Reveals Regulators’ Struggle

Guidelines issued by FINRA yesterday governing how registered reps use social media websites are constructive but highlight the challenge regulators face in structuring advertising rules that keep up with technology.

One can only cheer the suddenly enlightened view of FINRA in releasing the Notice. FINRA has stood silent for several years while social networking exploded. As the FINRA release points out, 46% of American internet users logged on to a social networking site in 2009.

With FINRA issuing no guidance as social media exploded in popularity in recent years, registered reps were absent from the online scene out of fear that they would break undefined rules. So FINRA in to be commended for finally bringing some clarity to this issue.

Where the guidelines go wrong and muddle the rules, however, is in an effort to distinguish “static” and “non-static” content.

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