SIFMA Social Media and Digital Marketing Seminar Recap: How Times Have Changed
SIFMA’s Social Media & Digital Marketing Seminar made its first in-person return since 2020. What was abundantly clear between 2020 and 2023 was how drastically the world has changed in the span of just three years.
In 2020, the seminar focused primarily on marketing and sales engagement and the use of newer technologies like LinkedIn, Twitter, Facebook and YouTube. Data shared during that event indicated advisers actively using social media were more successful than those who didn’t.
Learn how you can mitigate the escalating cost of non-compliance.
Fast forward to 2023, the key conversations were:
- How firms are operating in completely new ways — with greater reliance on digital communication tools and creating brand new information risks
- The rocky economic and financial market environment, which has driven firms back toward well established and more predictable business practices
- How SEC, FCA and CTFC actions were focused on the use of communication tools, including off-channel technologies as well as the newly updated Marketing Rule for investment advisers
Are financial advisers’ social media practices changing?
Putnam Investments previewed their upcoming adviser social media practices survey results at the seminar. They highlighted that:
- 79% of advisers now indicate that LinkedIn is their preferred network
- 46% of respondents indicated that LinkedIn is the only network allowed by their firm (up 16% since 2019)
- 38% of advisers use LinkedIn exclusively
- Facebook, Twitter, Instagram and YouTube usage are all down by about 30% since 2021
- 52% of advisers believe that social media will not have a significant role in marketing due to company compliance policies
So, yes, practices are evolving. Advisory firms are playing it safe in response to regulatory enforcement and the updated Marketing Rule.
Regulators are likely to add to the pressure this year as noted in the FINRA Exam Priorities letter that noted a likely sweep involving the use of finfluencers, gamification, and other engagement practices. As noted at the seminar by FINRA’s Head of Advertising Regulation Amy Sochard, firms continue to struggle with recordkeeping and supervision of today’s social content.
The ongoing off-channel communications challenge
Other panelists and attendees echoed that last remark, looking for additional guidance to address deficiencies related to off-channel communications risk.
This is where the topic becomes more than just the adviser’s use of social media. It’s about broader compliance and governance practices for any approved communications tool, along with the inspection and monitoring that firms undertake to uncover the potential use of prohibited tools. As we have previously written, this is a firm-wide challenge that spans social media, mobile apps and collaborative tools – and across all levels of the firm.
This challenge, starting with the initial decision of choosing to permit or prohibit a specific communications tool, is the subject of our upcoming panel discussion at the SIFMA C&L Conference on March 13 in San Diego. We’ll report live from the event and will share how firms are adjusting supervisory processes to ensure that they are staying in step with developments in communications technology and the ongoing focus from regulators.
Share this post!
Smarsh Blog
Our internal subject matter experts and our network of external industry experts are featured with insights into the technology and industry trends that affect your electronic communications compliance initiatives. Sign up to benefit from their deep understanding, tips and best practices regarding how your company can manage compliance risk while unlocking the business value of your communications data.
Ready to enable compliant productivity?
Join the 6,500+ customers using Smarsh to drive their business forward.
More Resources
Watch it Work
Contact Us
Chat
Subscribe to the Smarsh Blog Digest
Subscribe to receive a monthly digest of articles exploring regulatory updates, news, trends and best practices in electronic communications capture and archiving.
Smarsh handles information you submit to Smarsh in accordance with its Privacy Policy. By clicking "submit", you consent to Smarsh processing your information and storing it in accordance with the Privacy Policy and agree to receive communications from Smarsh and its third-party partners regarding products and services that may be of interest to you. You may withdraw your consent at any time by emailing privacy@smarsh.com.
FOLLOW US