The facts as it relates to FA utilization of social networking as part of their firms practice marketing mix are compelling.  For starters, the technology for monitoring and archiving social media activity to comply with the books and recordkeeping guidelines is available, affordable and proven.  Secondly, FINRA has done a great job on providing guidance on social media compliance, with Regulatory Notice 10-06.  While the SEC has been less forthcoming, representatives have loosely endorsed FINRA’s approach in various public forums.

Okay. We've established the fact that the financial services industry has been slow to embrace social media marketing. Why should we be surprised, after all this is an industry that relies on the Investment Advisers Act of 1940 as its regulatory foundation? How many of the legislative acts authors envisioned the presence of the internet and the profound impact of social networking when they drafted Rule 204-2 – "Books and Records to Be Maintained by Investment Advisers"? Be that as it may, the fact is that we work in a regulated industry and there are rules that impact all facets of practice marketing.

In the words of the noted physicist Marie Curie; “Nothing in life is to be feared. It is only to be understood.”   This sentiment has never been more apt than as it relates to the growing adoption of social media marketing by financial advisors as part of their practice development efforts.