Best Practices in Compliant Social Media

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Strange Bedfellows: ��Compliance and Social Media

Best Practices In Compliant Social Media

#CompliantSM

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Speaker Bio 1

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Jennifer Openshaw

•  A naJonally known expert

•  Wall Street Journal columnist

•  President of Finect, compliant social media simplified for the financial services industry

•  Frequent speaker

•  Founder of Women's Financial Network

•  Author of “The Millionaire Zone”

@jopenshaw

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Michael Kitces, CFP, CLU

@MichaelKitces

•  Partner & Director of Research, Pinnacle Advisory Group

•  Frequent speaker

•  Publisher of the The Kitces Report & the industry blog, Nerd’s Eye View

•  Avid user of social media

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Brittney Castro, CFP

•  Founder & CEO, Financially Wise Women

•  Registered rep, LPL Financial

•  Uses all social media channels to reach & service busy prof women

•  Featured in WSJ, The New York Times, Financial Planning magazine, InvestmentNews, and REP.

@brittneycastro

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Charles Massimo

•  Founder & President, CJM Wealth Management

•  Ex-‐compliance officer, Shearson Lehman Brothers

•  Ex-‐Financial consultant, Merrill Lynch •  Runs CJM, an RIA with $200mm AUM

•  Uses social media to reach & engage on tax and risk management

@CJMWealth

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Bob Bacarella

•  President, Chairman, CEO, and PorZolio Manager, MoneLa Mutual Funds

•  Over thirty years of investment experience

•  MoneLa Financial Services, Inc. is a Wheaton, Illinois-‐based registered investment adviser that manages the Young Investor Fund

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Why Social Media? 2

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Sources: (1) ING Direct’s USA’s Sharebuilder Survey 2012; (2) Social Media's Growing Influence Among High Net Worth Investors, Cognet Research and LinkedIn

of advised SM users interact with their advisors via SM 4%

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52% of advised SM users WOULD like to interact with their advisors via SM

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Nearly of wealthy investors reallocated investments, altered relationships with investment providers based on content found through SM

70%

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2/3 of millionaires surveyed said they will use electronic media with their advisors

Sources: Fidelity Investments survey 2011

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Are your compliance challenges going to be harder or easier in the

next two years?

Harder Easier

Taking Your Pulse:

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Compliant Social Media Q&A

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What do you wish you knew when you started using social media? Q:!

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•  Capture email address

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What you wish you knew when you started using social media? Q:!

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•  It takes time •  Followers are regular people

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•  The learning curve

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•  Not as restrictive as first thought

•  Uncertainty about what can be sent into cyberspace without notifying FINRA or SEC

•  If all Tweets or Facebook posts must be approved prior to distribution

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Q:! How long were you using social media before you could see a discernable difference in your business? ROI?

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•  12 month ramp-up

•  Very satisfied

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Q:!

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•  6 month

•  Holistically vs. just # of clients

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How long were you using social media before you could see a discernable difference in your business? ROI?

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Q:!

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•  Long term - still a question mark

•  Increases traffic & revenue

?


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Q:!

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New

•  Just started to consider social media as a marketing product…up to now not sure of reporting requirements

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Q:!

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When you're looking for consultants/platforms to help with your social media, what shapes your decisions on who to work with?

Tech knowledge

Meet businesses & markeJng needs

Compliance concerns

Experience

Their social media presence

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Q:!

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Personality & vibe

Young people

Clientele

Small Businesses

Corps

VS


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Experience

Creativity Cost

Friendly use -

tracking


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Q:!

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Compliance

Quick Review

Timely Approval

Tracking Activity

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Q:!

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Excluding compliance issues, what was the hardest part about getting your social media effort started?

•  Tools

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Q:!

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System

PosJng

Tracking Engaging

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Q:!

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Coordinating

Trends

Content Topics

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Q:!

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Compliance

•  Dedicating a person and establishing a compliance guideline that outlines sm procedures and tracking

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Q:!

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•  Unify approach -  3 platforms -  multiple employees

•  Regulations

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Social Media Compliance

Regulatory Issues:

Securities Recommendations

Testimonials, Endorsements & Advisement

Spot-Checking & Recordkeeping

Mandatory Regulatory Disclaimers

Stuart Fross, former general counsel, Fidelity

Professional Verification

CCOs Able to Remove, Approve & Supervise Content

Archiving, Reporting & Tracking

Customizable Disclaimers

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Q:!

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Your compliance officers’ top 3 concerns ?

Archive

Monitor Train I

Being Compliant

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Q:!

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I Being

Compliant

Content approval

Make sure proper

disclosures Make sure not liable

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Q:!

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I Being

Compliant

Storing all posts

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Q:!

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I Being

Compliant

SEC & FINRA Guidelines

Content approval Monitor

How To Allowable Posting

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Tool: Archive Compliant social media, simplified Presented by

Tool: Archive Compliant social media, simplified Presented by

Tool: Approve & Remove Content

1 Set up Role Permissions

Compliant social media, simplified Presented by


2 CCOs can Approve or Reject Content



3 COOs can Remove Inappropriate Content


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What are the top obstacles to getting CCOs on board with social media? What do they want/need?

Training employees: •  What is compliance •  What is right communication •  How to use tools for

archiving and monitoring

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Explaining


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Q:!

1ssddd Tracking Storage


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•  Understanding the rules and guidelines

•  Avoid being the first mouse in the compliance trap

•  Analyze what others are doing with sm

Compliance

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Q:!

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How did you work successfully to get your CCOs on board?

•  Much of what you share on social media is outside their domain

•  Demonstrate your trustworthiness & competence

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•  Conversation: mission, explaining

•  Work with them

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•  Business experience

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Q:!

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•  Still working on it

•  Updated Compliance Manual to allow for sm

•  Additional SEC and FINRA guidelines to guide CCO regulatory responsibilities

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Q:!

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What are the first 3 essential steps to getting a social media effort off the ground?

1.  Decide permissible platform(s)

2.  Identify the target goals/strategy

3.  Measuring results

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Q:!

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1.  Know target audience

2.  Know your brand

3.  Start with the one your inclined to do

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Goals

Process

Tracking Content

Targets

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1.  Clarity SEC & FINRA guidelines

2.  An approved procedure

3.  A monitoring system

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Q:!What are the first 3 essential steps to getting a social media effort off the ground?

3 P’s:

1.  Purpose – new clients, engage existing?

2.  Policy – Simple! Platforms, frequency, who

3.  Procedure (System) – content, distribution, permissions, tracking, reporting

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Q:!

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If you have more than one employee on SM, how are you effectively managing them in an easy, unified way?

•  Provide regular content to employees

•  Allow to alter for their own activity/personality/engagement

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•  Still a challenge


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•  Work with our Fund Distributor to provide guidelines and advice

•  Use Finect as a compliance tool

•  Coordinate activity with CCO

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Tool: Tracking Employees Compliant social media, simplified Presented by



Tool: Social Media Manager Compliant social media, simplified Presented by



Q:!

1ssddd

How often do you believe you should be putting out some form of content?

•  Depends on the platform & target audience

•  Twitter: 2-3 times/day at least

•  LinkedIn: 2-3 times/day at most

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•  Blog: 1-2/month

•  Facebook & Twitter: daily

•  Time spent: 1hr daily

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•  Meaningful content weekly

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•  Weekly based on real time news & events

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Bottomline: •  At least weekly

•  Leverage timely news •  Keep it brief but powerful – say

something meaningful

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What type of content seems to work best?

•  Original & Unique – Drive interest/readership

•  Statistics - Drive sharing activity

•  Questions - Drive engagement

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•  Short & Sweet -  short tips,

digestible money tip

•  Audience is busy prof women

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•  Short articles with visual stimulation

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•  Short & general interest topics

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Share one example of how you are successfully using SM to get new clients

•  New tax law article:

- Unique and original insights •  Results:

-  Interviews w/ reporters

-  Clients found us

-  Media following

-  Speaking opportunity

-  Contact directly from SM

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Q:!

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•  Biggest clients:

- YouTube videos - SM content

•  All clients are secured thru my endeavors

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Brittney Castro – LinkedIn Presented by

Brittney Castro – Twitter Presented by

Brittney Castro – Facebook Presented by

Brittney Castro - Website Presented by

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•  Targeting specific WM solutions

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Q:!

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•  Just started using Finect group to attract clients and generate traffic to our web

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Monetta group in Finect Presented by

Q:!

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Share how you engage with existing clients

•  Demonstrating knowledge & expertise - client needs

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Q:!

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•  Weekly email blast: YouTube money tips video

•  Ask clients to follow social media channels


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•  Blogging


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•  Just started to utilize blogging to drive traffic to our website

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What specifically are the different SM channels best for?

•  LinkedIn: -  Professional resume -  Outreach to target contacts,

referrals, and groups

•  Twitter: engage with influencers

•  Facebook: very unimpressed with results

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Q:!

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•  LinkedIn: -  build business alliances -  promoting material through niche

group

•  Twitter: -  start conversation -  what I’m working on -  promote other ppl I admire

•  Facebook: -  the most engagement -  personal life -  updates business


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•  Targeting specific people or group of people


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•  Static Facebook Page •  Link to Twitter & LinkedIn •  Drive traffic to website

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Q:!

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What are the biggest do’s and don’ts of using social media?

Do: Be personal Don’t: Be too personal

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Q:!

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•  Facebook: -  Do: visuals with posts -  Don’t: talk about

business all day long

•  LinkedIn: -  Do: build prof

relationship; ask ppl for contact

-  Don’t: just email blast ppl

•  Twitter: -  Do: promote other ppl’s

posts or biz -  Don’t: No respond

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Be smart! Once you do SM you are an open book to the world

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-  Do: static webpages with an

approved response system in place

-  Don’t: No recommendations, endorsements or giving advice

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Q:!

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-  Do:

•  Be personal, befriend (not corporate)

•  Educate others •  Be compliant: track, unified

system -  Don’ts:

•  Be long or lengthy – brief but powerful

•  Spam, salesy

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Summary •  Powerful Advice > Powerful Social Media •  Webinar: Onboarding to One-Stop Compliant Social Media

•  Next Step: Register at Finect.com (free premium access)

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Thank You www.Finect.com

#CompliantSM

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Education

Best Practices in Compliant Social Media