How Social Media Has Impacted Broker-Dealers and Investment Advisers

54 Pages·2015·0.78 MB·English

October 7, 2015
How Social Media Has Impacted
Broker-Dealers and Investment
Advisers
Sonia R. Gioseffi, K&L Gates (San Francisco)
Kenneth G. Juster, K&L Gates (Boston)
Michael W. McGrath, K&L Gates (Boston)
Lori L. Schneider, K&L Gates (Washington, DC)
© Copyright 2015 by K&L Gates LLP. All rights reserved.
This presentation is for informational purposes and does not contain or
convey legal advice. The information herein should not be used or relied
upon in regard to any particular facts or circumstances without first
consulting a lawyer.
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Introduction/Overview
I. What Is Social Media and Why Is It Important?

II. Legal Framework and Regulatory Guidance on
Social Media

III. Third-Party Posts and Content

IV. Privacy and Information Security Concerns

V. Drafting Social Media Policies

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What Is Social Media?
Why Is It Important?

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From SEC National Exam Risk Alert
“Social Media is landscape-shifting. It
converts the traditional two-party, adviser-
“Social Media is an umbrella term that
to-client communication into an interactive,
encompasses various activities that
multi-party dialogue among advisers,
integrate technology, social interaction and
clients, prospects, within an open
content creation. Social media may use
architecture accessible to third-party
many technologies, including, but not
observers. It also converts a static medium,
limited to, blogs, microblogs, wikis, photos
such as a website, where viewers passively
and video sharing, podcasts, social
receive content, into a medium where users
networking and virtual worlds.”
actively create content.”
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Most Common Sites Used
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Common Uses of Social Media
Marketing
Expanding brand awareness
Promoting firm’s website
Building customer loyalty
Connecting with clients and potential clients
Educating clients/potential clients
Servicing clients
Customer/market research
Identifying contacts within clients
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Increasing Usage

Putnam Investments 2015 Social Advisor Study
Findings:
 81% of financial advisors now use social media for
business, up from 75% last year
 40% of advisors use four or more social networks for
business, up from 25% last year
 79% of advisors acquired new business via social
media, up from 66% last year, with an average asset
gain of $4.6 million from those clients
 Median increase in assets gained via social media
activity is $1.9 million, up from $1.2 million last year

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What’s Being Used

2015 Cogent Reports' Advisor Media
Consumption Findings:
 74% use LinkedIn for business
 59% of those users said it's their primary platform
 75% use YouTube
 65% use Facebook
 32% use Twitter

2015 Smarsh Inc. Survey Findings:
 72% use LinkedIn, compared to 39% in 2011
 44% use Twitter, compared to 14% in 2011
 34% use Facebook, compared to 23% in 2011
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Demand from Investors

2014 Fidelity Investor Insights Study Findings:
 58% of emerging affluent investors have a
significantly more positive impression of financial
advisors who have a good website
 38% of those investors follow their advisor on social media
sites
 30% of them say that they're more likely to relate to a
financial advisor that has a social media presence
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