As the regulatory landscape is constantly evolving, Compliance Risk Concepts (“CRC”) is issuing its monthly […]
Overview & Summary
FINRA announced that it is conducting a review of firm practices related to the acquisition of customers through social media channels and how firms manage their obligations related to information collected from those customers and other individuals that may provide data to firms. Sweep effort review periods will begin (unless otherwise noted) starting January 1, 2020 and will likely carry through the date of examination (or most recent quarter end). Note that this sweep effort was announced following a request for comment by the SEC regarding “digital engagement practices” of advisers and broker dealers. View this request in full, here.
As always, CRC reminds firms that the best compliance program is a proactive one. As such, we suggest that firms (whether registered with FINRA as a BD or with the SEC as an RIA) who are utilizing social media, as well as social media influencers, often known as finfluencers, review their current policies and procedures to ensure that recordkeeping, data tracking and protection, and disclosure requirements relative to investments, investment advice, and solicitation agreements are all addressed properly. In addition, CRC recommends that key personnel involved in such processes are well trained, and that such training is specific and documented.
Some Key Takeaways:
Opportunities for CRC to Assist Your Firm (list not exhaustive):
Please contact Mitch Avnet for more information.
Mitch Avnet at email@example.com or (646) 346-2468
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