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When did social media become a marketing issue? The marketing department needs to realize Facebook and Twitter is a way to create conversation with a client, not a resource to create social spamming. Most people already receive enough spam through their emails. We’ve found that among Erado’s social media clients, 67% use LinkedIn, 24% use Facebook, 8% use Twitter, and 1% use a blog.

FINRA recently released the Regulatory Notice 11-39. Notice 11-39 supplements Notice 10-06 in the first round of guidance issued by FINRA in January 2010. Notice that 11-39 is not meant to alter the principles of 10-06, but rather answer additional questions that firms have raised regarding the application of the rules to social media use during the past 21 months.

Almost three years ago, Erado embarked on developing a social media compliance solution. Utilizing proxies was in consideration because from a developer’s perspective, it had its advantages. They are easier to build, are controlled by the company, and have the ability to block or restrict access to content and services. These statements are based on proven technology from the last millennium and have served us well. With that in mind, Erado worked on developing a social media proxy solution similar to that of our competitors.

What FINRA & the SEC Require from Firms
Use of social media platforms are growing exponentially in the business world. They are used to engage with customers, build brand recognition, and transmit information. These different forms of communication also offer potential pitfalls to the company, ranging from federal securities law violations, disclosure of confidential information, various tort claims such as invasion of privacy or defamation, and brand damaging. Record-keeping of all social media content is one of the primary requirements for all firms.