The fact that the adoption of social networking by FAs is increasing is quite positive given the slow start by the financial services sector with regard to integrating social media into a firm’s marketing mix.  Advisor proficiency with social media marketing will certainly follow once three criteria have been met:

This appears to be the seminal question being asked by many advisors as it relates to social media marketing.  Too often the answer to the question is clouded by fears regarding the regulatory environment, but that should not be the influencing factor in deciding whether or not to embrace social media as part of your firm’s marketing efforts.  The regulatory guidelines related to social media are relatively clear and the technology required to monitor and archive social networking activities is proven and inexpensive.  The real question is quite simple; “What are my clients doing with social media?” 

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.