Financial firms are interested in Instagram, YouTube; Compliance professionals remain cautious
What would you like to know
- Companies that allow Linkedin, Facebook, and Twitter are less concerned with capturing data than with proper oversight of the content itself.
- Companies that do not let employees send text messages in a compliant manner or ban texting are responsible for ensuring that employees adhere to the policy.
- Today, businesses are more interested in adding Instagram and YouTube, which allow them to show who they are.
Compliance teams at financial services companies remain wary of the influence of social media on reputation, the possibility of compliant texting for advisors, and the adoption of new technologies that facilitate oversight processes. Hearsay Systems reported on Tuesday.
Hearsay, which provides social media compliance solutions, also asked about companies’ social media plans over the next year and found many of them keen to adopt Instagram and YouTube.
“The amount and complexity of digital communications for financial services has exploded in our hybrid and remote work environments, and compliance teams often lack the resources (human and machine) to effectively manage this increase in volume.” Iain Duc-Richardet, vice president of compliance strategy at Hearsay Systems, said in a statement.
âAs the size of compliance teams needs to remain stable, technology needs to be leveraged to support the weight. “
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Hearsay Finserv 2021 compliance survey found that financial services companies no longer consider social media as a significant compliance risk, but as a reputational risk.
Although more than half of the financial services companies surveyed said they allow Facebook and Twitter and around 90% allow Linkedin, they are less concerned with capturing, monitoring and archiving data than with the inherent risk of being able to supervise adequately. the content itself.
Two-thirds of companies said they allow advisors to generate unique content for social media, and 90% of companies pre-approve some or all of that original content, even though regulators have reduced the requirement to such a screening.
Sixty-three percent of survey respondents indicated that they allow texting for commercial purposes. Hearsay said this indicates that these companies likely have a compliant text messaging solution in place and for them the solution meets their regulatory requirements for capturing and monitoring this activity.
Responses from companies in the survey that don’t allow texting, however, indicate that they view texting as a significant regulatory risk.
Hearsay noted that recent enforcement measures have shown that when companies fail to provide a channel for their employees to send text messages in a compliant manner or simply ban texting, they take on the burden of ensuring that employees adhere to the policy. He said the measures these companies rely on to defend their policies are expensive and complicated.