From the Desk of Jim Eccleston at Eccleston Law:
As technology improves and compliance fears ease, advisers at brokerage firms are joining their registered investment adviser counterparts in the social-media race. Contrary to registered investment advisers (RIAs), many broker-dealers have and continue to require preapproval of personal messages, or limit posts to canned corporate material. FINRA does not require preapproval of social-media posts, and better technology / compliance tools are easing fears.
For example, Cambridge Investment Research Inc. lets its representatives post on Twitter, LinkedIn and Facebook, subject to a post-use review. Further, Commonwealth Financial Network also allows its representatives to use LinkedIn, Twitter and Facebook. At LPL Financial, approximately 5,000 of the firm’s advisers, or about 40% of the total, are signed up to use social media. As of August 2013, that number was up almost 60%. Further, Raymond James advisers can use Facebook, Twitter and LinkedIn, but content has to be preapproved. Close to 2,000 of Raymond James’ 5,300 advisers in its independent and employee channels have connected through special software. Moreover, Bank of America Merrill Lynch allows its reps to use LinkedIn only. Lastly, Wells Fargo has had a LinkedIn pilot program in place since September 2013 in which about 50 of its advisers can post content. Meanwhile, the firm has gotten about a third of its 15,000 reps to put up a profile on LinkedIn.
The attorneys of Eccleston Law represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.
