The interactive nature of social media makes it a more risky marketing tool than static advertising or email campaigns. Yet, it is really no more risky than the interactive engagement that advisors, wholesalers, and investors engage in each day on the phone. It is just a whole lot more public.
Still, FINRA and the SEC have cautioned our industry about the use of social media. They have outlined specific regulations, rules, and recommendations that we must follow to join the social conversation. This makes it seem like social media is risky, complex, and something financial firms should avoid.
Of course, at one time in the past even the tried-and-true methods were perceived as new and risky. The regulations and rules around email communication crippled the adoption of that tool for years and spurred a whole industry of risk-mitigating solutions.
While social media seems risky, with an understanding of the rules and a thoughtful approach firms can mitigate the risk and reap the social rewards. To help dispel some of the confusion and risk, below is a link to excerpt from a webinar hosted by Finect that covers the difference between FINRA’s view of Static Content and Interactive Content.