Facebook and Twitter: static vs. interactive content

FINRA Regulatory Notice 10-06, issued in January 2010, addressed Guidance on Blogs and Social Networking Web Sites, and it opened the floodgates for creative financial firms to use sites such as Facebook and Twitter in financial marketing.

Leading broker-dealers including LPL Financial, Commonwealth Financial, and KMS Financial Services have since announced partnerships to enable compliant use of social networking under 10-06.

Financial advisors should understand a key distinction 10-06 made between static and interactive content. Static content, such as Facebook's “wall,” does not change very often and requires pre-approval by a broker-dealer registered principal.

Non-static real-time communications, such as an interactive Twitter feed, is considered an interactive electronic forum under FINRA rules. It needs a principal’s review, but not pre-approval. You can read the text of 10-06 here:


About the Author
Rich White

Rich White

Writer and sales training consultant with 25 years of experience in the financial services industry, White is the author of "12 Steps to Your Personal Success in the 401(k) and Small Plan Market," the leading retirement plan sales program in the industry. You can reach him at 914-380-4522 or by email at richwhite8@yahoo.com.


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