Digital Marketing for Financial Services Companies with Mike Langford

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Morgan Stanley’s decision to loosen the reign for their financial advisers on Twitter is the latest in a long list of financial services case studies of interest to website marketing companies. FINRA fined Barclays $3.75M for system is record keeping and email retention failure.

The regulator warned investors against trading on “pump-and-dump” emails. The finance industry has their social media conferences and consultants. Because of specific finance industry rules and regs like FINRA 10-06 and 11-39 and SEC Risk Alert: Investment Adviser Use of Social Media, using social media in financial services must be by applicable advertising, account origination, and document retention requirements.  

Mike Langford is the CEO of finservMarketing and a financial services industry veteran with 20 years of experience in roles spanning customer service, finance, and investment advice and management at Fidelity Investments, State Street Corporation, The Pioneer Group, and BFDS.  In this episode, he explains how Certified Financial Planners, Investment Advisers, and Bankers can use social media effectively and responsibly.

Who regulates how financial service companies use digital marketing

The regulation of how financial service companies employ digital marketing strategies is overseen by various regulatory bodies, including the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC). These entities play a crucial role in ensuring compliance within the industry. They establish guidelines and standards that financial service firms must adhere to when implementing their digital marketing campaigns. Compliance with federal laws, such as the Gramm-Leach-Bliley Act and the Securities Act of 1933, also contributes to the regulatory framework governing digital marketing in financial services.

Difference between digital marketing guidelines and actual, enforceable law

It is essential to distinguish between digital marketing guidelines and enforceable laws in the context of financial services. Guidelines, often provided by regulatory bodies like FINRA, offer recommendations and best practices for digital marketing strategies but are not legally binding. Enforceable laws, on the other hand, carry legal obligations and consequences for non-compliance. Financial service companies must navigate both these guidelines and laws to ensure they meet regulatory requirements while effectively utilizing digital marketing channels.

Digital marketing compliance requirements for financial services providers

Financial services providers face stringent compliance requirements when implementing digital marketing strategies. These requirements encompass various aspects, including record-keeping, supervision, and content approval, and are established by regulatory bodies like FINRA and the SEC. Ensuring that digital marketing activities align with these requirements necessitates robust compliance programs and ongoing monitoring to mitigate risks associated with non-compliance.

How to satisfy digital marketing archival and supervisory requirements

Meeting archival and supervisory requirements in digital marketing for financial services demands a comprehensive approach. Financial services providers must implement efficient archival systems to capture and retain digital marketing communications. Additionally, robust supervisory mechanisms are essential to review and approve content before publication. Automation tools and vigilant monitoring help ensure compliance while satisfying archival and supervisory obligations.

Responsibilities for financial services over static vs. interactive digital marketing posts

Financial services providers must differentiate between static and interactive digital marketing posts and understand their responsibilities. Static posts, which do not allow user comments or interactions, primarily require pre-approval and supervision to ensure compliance with regulatory guidelines. Interactive posts, on the other hand, necessitate continuous monitoring and timely responses to user-generated content. Financial institutions must balance maintaining compliance and fostering engaging interactions on their digital marketing platforms.

Best practices for originating new accounts on LinkedIn, Twitter, and Facebook

Establishing new accounts on platforms like LinkedIn, Twitter, and Facebook demands adherence to best practices within the financial services sector. It involves comprehensive due diligence, verification of account information, and robust security measures. Financial institutions should also establish explicit content creation and publication guidelines while ensuring consistent branding and compliance with regulatory requirements.

Regulating advertising and public appearances, which digital marketing is considered

Digital marketing, in the context of financial services, is considered a medium for advertising and public appearances. It falls under the purview of regulatory bodies like FINRA, which require financial institutions to adhere to specific advertising rules and guidelines when utilizing digital marketing channels for promotional purposes. Ensuring compliance in this regard is paramount to maintaining transparency and investor protection.

Avoiding adopting or becoming entangled with social networking sites

Financial services providers must exercise caution when adopting and engaging with social networking sites within their digital marketing strategies. Avoiding entanglement with these platforms necessitates a thorough assessment of each site’s risks and compliance challenges. Robust policies should be in place to guide employees on appropriate usage and interactions to mitigate potential compliance pitfalls.

Compliance through policy and digital marketing training for financial services

Achieving compliance in digital marketing for financial services is contingent on establishing comprehensive policies and thorough training programs. Financial institutions must develop clear and up-to-date digital marketing policies that align with regulatory requirements. Equally vital is providing ongoing training to employees, ensuring they are well-versed in compliance best practices and capable of navigating the intricacies of digital marketing within the financial sector.

How to make sure you’re prepared to comply with random FINRA spot checks

Preparation for random FINRA spot checks is crucial for financial services providers. Firms should implement robust record-keeping systems for digital marketing communications to ensure readiness, allowing for efficient retrieval during spot checks. Additionally, a culture of compliance and vigilance must be instilled across the organization to swiftly address any potential issues that may arise during these examinations. This proactive approach helps maintain regulatory compliance and instills confidence in investors and regulatory authorities.

Photo by Claire Anderson on Unsplash

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