FAs at Raymond James and Commonwealth utilize full range of social media interactivity
Raymond James Financial and Commonwealth Financial will soon begin allowing their advisors to interact with and engage in conversations with others on Facebook, Twitter, LinkedIn and blogs. This will enable them to post real-time tweets, updates and comments that have not been pre-approved. At present, advisors at the two firms are allowed only to post “static updates, pre-approved posts with no real-time commentary.
Last September, Cambridge Investment Research began using Socialware to track and archive its advisors’ posts, tweets and commentary on LinkedIn, Facebook and Twitter. About 10% of Cambridge’s 2000 advisors are signed up for Socialware and the firm is supporting them to achieve a social media presence, according to Cambridge president Amy Webber. That number is expected to jump once the firm starts allowing full interactivity in June.
“The way regulations work is this is viewed as a live appearance because it is conversational and can’t be pre-approved," said Commonwealth Chief Marketing Officer Todd Estabrook. “I think it will allow them to do exactly what they do in live interactions with prospects and clients, which is to engage in conversations or invite conversations…….it’s better than a letter and the recipient can actually ask a follow up question and have an answer back from the FA.”
Most of the other 50 independent broker-dealers that allow social media for their advisors continue to permit only static updates.
“It’s an evolving process,” said Francoise Cooke, a consultant in the broker-dealer division at ACA Compliance Group. “The first stage is to prohibit, then go to the second stage, which is to allow limited use with trials, a template and training. The third stage is when they start to allow more interactive use.”
Going from static to interactive use marks a major shift. To comply with 2010 FINRA guidance on broker-dealer use of social media, Commonwealth announced late last month that it had cut a deal with Erado, whose software products provide full monitoring and tracking social media use.
“In the past, we have discovered problematic communications and contacted the firms to try to resolve it,” says Tom Pappas, a vice president and director of advertising regulation at FINRA.
Raymond James CEO Dick Averitt recently announced that the firm is on the cusp of signing a contract with an outside vendor to retain and track all of its advisors' online communications, saying “the deal will allow FA’s to actively participate in conversations on these websites just as your 10-year old does,” adding, "at Raymond James we fully intend to participate in the technological advances that benefit you and your clients.
There are at least four software companies that track and monitor social media interactions. Erado; Arkovi and Message Watcher (joint venture); Actiance (Socialite) and Socialware (Risk Manager and Social Marketer).
Commonwealth chose the Erado product because it allows the firm to capture activity from a single user login, instead of an entire machine. This ensures the privacy of a financial advisor who may be sharing a computer with other family members at home.
“So if I am an advisor working at home in the den at the house, and I want to tweet about something and update my Facebook page with a thought, I can do that because I will have appropriately signed up, and my kids posting will not be tracked," Estabrook Said.
Commonwealth offers its advisors best practices guidelines on what an advisor should or should not say online, as well as a moderated forum where advisors can exchange ideas with each other and get in touch with IT and marketing personnel in the home office.
Social media needs to be a full-time thing, Estabrooke said. “If you are going to engage in social media you can't just post and then go away and forget about it. You have to make it part of ongoing office activity, assigning this to someone in the office, putting that on a regular schedule.” “if you have writers block you’re welcome to use the pre-approved ones to start off.”
Sources:
Raymond James, Commonwealth to give FAs free reign on social media (http://registeredrep.com/advisorland/compliance/raymond_james_commonwealth_give_financial_advisors_free_reign_on_social_media_0502/). Registered Rep, May 2, 2001
Best social media practices for FAs (http://www.fins.com/Finance/Articles/SB128397191911635509/Best-Social-Media-Practices-for-FAs). Fins Finance, September 16, 201
