Social Media Compliance for RIAs and Broker Dealers

Anyone who has attended an event for financial professionals or investors has more than likely heard a regulator open their speech with, “The opinions are my own and don’t reflect those of the (insert regulator here).” From social media compliance to market commentary, regulators have the ability to speak freely without representing their employer. When an associate speaks or presents publicly viewed content, however, your firm is on the hook.

And with the rise of social media, that hook just got a lot bigger.

While I frequently hear chief compliance officers say, “Our firm prohibits social media to avoid the risk,” trying to ignore or prevent social media use is futile. Even if employees aren’t talking about your company online, your clients, competitors — and even impersonators — may be.  

But, just as investors must understand the risks involved in portfolio opportunities — and shouldn’t just frantically jump at hot stocks — you should approach social media with care and understanding. When embarking on a social media campaign, I suggest you understand two primary reputational risks involved, so you can address these challenges before they become problems.

1. Dated Content

One of the catches with social media engagement is you must maintain frequent and relevant posts for your efforts to help you. An infrequently updated online presence can be worse for your business than no online presence, because the inconsistency shows in your actions and can imply you don’t stick to what you start. Additionally, in a quickly changing industry like finance, only recent content is truly relevant.

Before jumping on the social media bandwagon, make sure you have a process and schedule for regularly providing fresh content in every channel you use.

2. Inaccurate Information

Because virtually anyone can join the conversation on social media, ensuring accurate messages are made on behalf of your company is only half the battle. Of course you want to protect your company’s brand in the messages you share, but you must also review how your clients and competitors are discussing your business online. By keeping content accurate, you provide your audiences the information they desire while helping protect the type of details they receive.

Create a review process to catch all online mentions of your company. Doing so will help you comply with regulations and also protect your reputation from inaccurate information or unflattering discussions.


In the next two weeks, I’ll help provide the guidance you need to address these tasks and create a social media compliance program, so you can make the most of your social media opportunities. In the meantime, call me at 804.965.5403 with any questions.  I might not always be by my phone, but I will always call you back.