Finra weighs in on social media

By Gary Linnell

ProWEB Wire (Industry News)

The Financial Industry Regulatory Authority Inc. (Finra) has been reviewing many of the issues surrounding the professional use of social media in the financial services sector for several months, and recently issued their guidelines on the subject.

The brief, which can be viewed here, attempts to answer common industry questions concerning blogs and social media. According to Finra, "firms must adopt policies and procedures reasonably designed to ensure that their associated persons who participate in social media sites for business purposes are appropriately supervised, have the necessary training and background to engage in such activities, and do not present undue risks to investors."

The regulator adds that firms should institute a policy that prohibits any person associated with the company from engaging in social media without supervision.