Investment advisory firms are giving up in the battle to keep social media out of their shops. Instead, they’re loosening bans and allowing more use of social media while putting appropriate policies and procedures in place, notes Investment News columnist Mark Schoeff Jr.
Schoeff notes a recent online poll of 462 compliance professionals that found that the percentage of investment advisory firms with written social media policies has nearly doubled in the last three years, rising from 43% in 2010 to 83% today. And the number of firms that prohibit the use of social media declined from 54% last year to 49% today.
Interestingly, survey respondents said they have increased the amount of compliance testing for advertising, social media, personal trading, disaster recovery and political contributions in the last year. A third of the firms spent more than $500,000 on compliance last year.
