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4 Elements of Social Media Guidelines

If you’re not using social media to promote your firm and content, consider this: 22 percent of the world’s population uses Facebook (not to mention 79 percent of Americans) and nearly 1 in 3 internet users with a college degree are on Twitter.

When financial advisers use social media well, it can boost their overall marketing strategy considerably. When they don’t, it can be an expensive, potentially career-ending disaster.

But don’t let that scare you. Just establish firm rules of engagement in these areas before posting anything.

1. Compliance

Watch out for these potential red flags:

Promissory language: Don’t promise success and don’t say you can get any better results than anyone else.

Testimonials: This one’s also kind of obvious, but it has some finer points. In the SEC’s guidelines, they lay it all out, but it basically boils down to this: keep the testimonials off your Facebook, Twitter, Linkedin or other self-run social media sites, even if the clients post it themselves. But reviews from other people on sites like Yelp, Google Reviews or Angie’s List are OK.

Out-of-context numbers: I made a good number of mistakes in this area when I first entered the financial world because I assumed anything that was acceptable in a blog post was acceptable on social media.

After a few panicked phone calls from clients, I learned this lesson: don’t post any market statistics. They can easily be taken out of context and viewed by someone as promissory.

2. Approval Process

Giving anyone (including yourself) total freedom to post anything on your social media accounts whenever they want is not a great idea. You’ll want to implement an approval process.

At Mineral, we developed a social post template that makes it easy to share social post ideas with your team and track the approval process. (I set up a “View Only” version of our sheet that you can check out for yourself. If you want your own, in the File menu, just click “Make a Copy.” We also have an Excel version.)

But a social post template alone won’t solve all your approval problems. You’ll need an approval workflow that takes your posts from creation to publication.

Here’s ours:

Creating posts should fall to your creative team (if you don’t have one, a more creative or social media-savvy team member will do). But final approval should be reserved for the people who will ultimately be held responsible if a bad post goes up.

Jud and Kim (our CEO and president, respectively) reserve the right to final approval. It’s their necks (and business) on the line.

Don’t have the time or interest to approve every piece of content that goes out the door? That’s okay, just understand that you’re basically handing over the reins of your firm’s public image, so you need a professional you can trust.

3. Personal Profiles

During a speech by Trump in early March, Dan Grilo, a principal at Liberty Advisor Group, posted something stupid about the wife of a fallen soldier and landed himself in some very hot water.

He posted from his own personal account, but people still began associating Liberty with Grilo’s tweet. In the end, he was fired and Liberty issued an apology, InvestmentNews reported.

Set up some suggested guidelines for what employees should avoid talking about, even on private social media channels (the big three are inflammatory political statements, market predictions and offensive language). You could require guidelines or you could just use Mr. Grilo as an example.

People can and do get fired for stuff they post on their personal accounts. It happens all the time. See this Oxygen article on things people have been fired for posting on their social media accounts.

4. Interactions

Social media is a two-way street. And that’s a good thing! If you don’t respond to people tweeting at you or posting on your wall, you could miss out on prospects and end up looking rude.

Make sure engagement notifications are sent to a phone, computer or Slack (using social integrations) so you don’t miss anyone reaching out.

When someone tweets at you or posts on your wall, you have two options: one of the final approval people could handle interactions so engagements move smoothly, or you slow down the engagement process and use the approval workflow.

This could be done easily and quickly in Slack (an app directory site where we have a #social channel to kick ideas around for posts and responses).

Bonus Rule: Keep Records of Everything

As FINRA wisely cautions, you should keep records of everything you do on social media. To do that, you’ll want to use a social posting and archiving service like Social Assurance or Hey Orca that keeps an audit trail.

Social media is fertile ground for adviser prospects. Who knows? Your next $1M-plus client could find you because of a simple retweet. Just make sure you think about these four areas before you post.

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Zach McDonald
Editorial Director
Mineral Interactive
Omaha, Neb.


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Step Up Cybersecurity

As planners incorporate more technology into their offerings to clients, it’s imperative they stay on top of their cybersecurity measures.

“Cybersecurity is a major issue for financial planners in today’s highly technical, digital world,” writes Ben Lewis, FPA’s public relations team leader on an FPA Connect post calling for participants for a cybersecurity assessment that has since ended.

Anthony Stitch explains in the forthcoming August issue of the Journal of Financial Planning that planners who don’t provide the technology clients want these days may lose those clients to firms they like less but that offer the technology they prefer. This, he writes, is called digital attrition. Members, you’ll get to read the full article when it comes out. And if you’re not yet a member, maybe now is the time. Learn more here.

“As you incorporate more technology into the running of your firm, it’s important that you stay educated on best practices for cybersecurity,” Blane Warren, an industry leader in financial services marketing, compliance, and technology, writes on XY Planning Network’s website.

But planners this move toward providing more technology options means planners need to step up their cybersecurity game in order to keep their clients and themselves safe. Something they’re not currently doing very well, according to a report from External IT titled “Financial Services Firms Face Further Scrutiny of Their Cybersecurity Practices: Is Your Frim Ready?”

InvestmentNews reports that that report found three key areas were lacking in terms of financial cybersecurity: security policy, firms failing to audit their IT security; accountability when moving data, moving data to personal and home devices without tracking measures; and disaster recovery, not having emergency business continuity plans.

This isn’t to say that planners don’t want to address cybersecurity issues, rather they don’t know where to go to get their information, Brian Edelman, chief executive of Financial Computer Services told InvestmentNews.

Edelman recommends using a cybersecurity firm that understands financial services.

In a recent article, ThinkAdvisor recommended planners check out the following resources: National Institute of Standards and Technology (nist.gov) and the Financial Services Information Sharing and Analysis Center (fsisac.com).

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Ana Trujillo
Associate Editor
Journal of Financial Planning
Denver, Colo.


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Fiduciary Rule for the Modern World

On April 6, the U.S. Department of Labor unveiled the fiduciary rule that has been six years in the making.

Department of Labor Secretary Thomas Perez said that the new rule ensures that financial advisers will act in the best interest of their clients. Gone is the suitability standard and replacing it is a fiduciary standard.

“A consumer’s best interest must now come before the adviser’s financial interest,” Perez said.

The Financial Planning Association will be there for its members throughout the process of compliance, said FPA President Pamela Sandy, CFP®. Firms are required to comply by Jan. 1, 2018.

Sandy said the organization is working with the Financial Planning Coalition—which includes CFP Board and NAPFA—to analyze the rule and figure out exactly what it means for FPA members.

“FPA, as your professional home, will be helping you understand the rule and assisting you in adjusting to the impact the rule will have on your clients and your business,” Sandy writes to FPA members.

Members now have access to the organization’s newest Knowledge Circle on Public Policy and Regulation, which is now available to help members navigate the new law and discuss information with peers. The Knowledge Circle will temporarily be headed by FPA Chair Edward W. Gjertsen, II, CFP®.

Perez said the change in regulation is long overdue.

“The regulatory structure that protects people’s investments has not kept up with the changing landscape,” Perez said at a press conference. The rules that were in place were sufficient for days when pensions dominated the retirement field and Leave it to Beaver was popular on television, he added.

But we live in a Modern Family world now, IRAs and 401(k)s rule the roost, and people are losing $17 billion annually in fees for bad products and advice, according to a 2015 White House report.

Perez said the streamlined rule addresses concerns that many opponents had with the first versions of it, which were proposed in 2010, withdrawn, then re-proposed in 2015. The new rule has some flexibility for firms that sell proprietary products, has extended the deadline for compliance four months, and streamlined the mechanics of the contract, among other things.

“Today’s rule ensures that putting clients first is no longer simply a marketing slogan, it’s now the law,” Perez said.

Proponents of the new rule are expecting a fight from the rule’s opponents, New Jersey Senator Cory Booker (D-N.J.) said at the press conference on April 6.

But Senator Elizabeth Warren (D-Mass.) said, “We are not going back. This rule is too important for seniors, it is too critical for workers, and it is one more step to making sure our economy can grow from the middle out, not from the top down.”

Join the discussion on FPA Connect, and see below for a list of helpful links to help you arm yourself with the most current information.

 

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Ana Trujillo
Associate Editor
Journal of Financial Planning
Denver, Colo.

 

Helpful Links for More Information