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The Financial Industry Regulatory Authority (FINRA) outlined more clearly on Thursday how brokers may utilize social media tools such as Twitter, LinkedIn, Facebook and other website blog content.  In January 2010, FINRA issued a regulatory notice that provided guidance on its rules regarding how brokers may use social media sites to communicate with the public.  Since that time, brokers have raised questions seeking clarity on the application of those rules.

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.