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Unsolicited Third-Party Comments on Social Media Are Not Testimonials – Shouldn’t be Shared

FINRA has issued a third notice providing guidance on social media and digital communications, answering questions from broker-dealers and reps in a Q&A format. Among other issues, the new guidance clarifies that unsolicited third-party comments on social media aren’t testimonials. However, “advisors should not like or share such favorable comments,” a legal and compliance expert notes in an article at ThinkAdvisor. See the full story below. Also, if you haven’t already, it might be time to have “the talk” with clients about cybercrime and provide examples of how hacking can occur. An article at ThinkAdvisor provides several examples as well as a checklist to go over with clients to make sure their insurance policies cover losses related to cybercrime. See the link below.

FINRA Issues Social Media Q&A

by Melanie Waddell

Source: ThinkAdvisor

Broker-dealers must keep text messages, reps are allowed to share certain firm-created content using their personal media accounts and unsolicited third-party comments on social media are not testimonials, according to new guidance on social media and texting issued by the Financial Industry Regulatory Authority.



The Cybercrime Financial Threats Your Clients May Be Overlooking

By Fran O’Brien

Source: ThinkAdvisor

Virtually every wealth management firm and brokerage has made cybersecurity a priority. But while financial firms and advisors themselves regularly implement new software and procedures designed to safeguard client data, many advisory firm clients remain vulnerable to cybercrime and the staggering losses that can result. These losses occur because clients’ property and liability insurance, which should address many cybercrime-related losses, is very often inadequate.


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