The Financial Industry Regulatory Authority Inc. (FINRA) launched an exam sweep in September 2021 to probe how its member firms use TikTok, Twitter, Instagram, Facebook and other social media platforms. On Wednesday, FINRA posted an update on the initiative that included best compliance practices for engaging so-called finfluencers.
Asset management partner Jessica Reece told Investment News that, “this is a reminder [that] greater access to retail investors requires greater vigilance. It’s so easy to say something and click ‘post’ without thinking of the ramifications. Each post can matter.”
“FINRA wants to see more than updated policies and procedures,” Jessica shared. “It is looking for evidence that firms are putting them into practice.”
“That’s an extra step we’re seeing from regulators more and more. Tell us what you do. Tell us how you train your people and carry out these procedures.”
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