Don’t Let New Social Media Regulations Trip You Up

by TMG

by. Georgann Smith

Back in January, the Federal Financial Institutions Examination Council (FFIEC) issued a proposed risk management guidance for the use of social media. The FFIEC regulations include several requirements:

  • Social media strategies
  • Regular reporting of ROI
  • Monitoring of social channels
  • Formal social media policies & procedures
  • Management of third-party vendors to ensure customers are protected
  • Compliance protocols

A few weeks ago, the FFIEC asked financial marketers to share their opinions on the proposed guidance — and they got an earful. Many felt there were already enough regulations in place, particularly since the Securities & Exchange Commission (SEC) recently announced that companies could use social media to announce key information. In their statement, the SEC confirmed that Regulation Fair Disclosure applies to social media the same as it applies to company websites.

To help credit unions and community-based banks navigate the changing regulatory environment and become more proactive with developing compliance strategies, TMG (in partnership with sister company PolicyWorks) has developed ComplyRight, a full-service, comprehensive compliance solution. Among the compliance strategies the packaged services address are those impacted by advertising and social media issues.

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