Regulated companies typically are not using social media in a complaint manner.
Banks, Credit Unions and other regulated companies usage of social media can for the most part be represented by one of the two following scenarios.
- Non-Compliant Usage – This scenario is typically one where individual employees are using social media. Despite the fact that the company may have strict guidelines for social media usage mistakes are often made.
- Non-Usage – Many companies have completely avoided social media for fear of regulatory issues. But with the now widespread use of social media this approach is quickly becoming impractical.
- Manual Compliance – Still other companies have embraced social media in an official manner but are manually archiving and monitoring social media. While these companies should be applauded for being thought leaders this approach is a risky proposition as errors can result in non-compliance.
The SEC, FINRA, NCUA and other regulatory agencies have issued guidance on social media usage. The guidance makes using social media similar to advertising or general client communication from a regulatory perspective. However most companies do not have systems in place to deal with this new communication medium.
We will be hosting this Social Smart Software webinar on Tuesday December 3rd at 11AM eastern and learn how i-Comply social media compliance software can help your company overcome these obstacles and leverage social media in a low risk compliant manner.