Is your firm among the 21 percent? In a recent white paper published by Quest CE titled “A Deeper Look at Social Media Compliance,” research was published concerning social media use in the financial services industry. Among the data collected, the white paper determined what financial firms used social media for, and importantly, how many of the surveyed financial industry firms were actively archiving social media. And the numbers don’t lie. Of the surveyed firms, merely 21% affirmed that they had a social media archiving system in place.
The Other 79 Percent
Considering the clear and repeated language of FINRA and the SEC about financial firms’ critical need to archive social media, it is surprising that only 21% of surveyed firms knew whether their firm was actually preserving social media records. That means that 79% either do not archive, or their archiving solution is unknown. The risks of foregoing this requirement cannot be ignored, however. In FINRA’s Regulatory Notice 11-39, as well as Rule 17a-4(b)(4), FINRA clearly outlined the requirements that 79% of firms are overlooking.
So, why are 79% of financial industry firms skirting this compliance risk? Given the various fines handed down by the SEC and FINRA for not archiving emails in recent years, it is only a matter of time that the first fine for failing to archive social media is sanctioned. As the attention of compliance officers shifts to address social media recordkeeping, some firms might institute a ban on social media as a “direct” solution. But, this is the same as cutting off all email access when email archiving became a compliance task. It is impractical and anachronous. Unfortunately, this is the case with 28% of the survey respondents in the survey who stated that they were banned from social media at work.
Join the 21 percent
Allow social media in the work place, and become a part of the growing 21 percent. ArchiveSocial is a social media archiving solution that is fully FINRA and SEC compliant. It is simple, cost-effective, and much more practical than a moratorium on social media. Then, hopefully, the 21 percent can become the 100 percent in the near future.