On the one hand, broker dealers and RIAs have to embrace social media to attract and keep advisors; on the other hand, they need to comply with what some view as outdated regulations that prohibit most of the advisors’ activities. As social media sites like LinkedIn (the most popular site for business networking) introduce new features like endorsements, firms are scrambling to keep up. Do tweets need to be reviewed and approved? What are the limits on Facebook’s new service that allows users to send gifts like Starbucks credits? Reuters ponders these issues in a recent article.
There’s no doubt that those advisors who find ways to leverage social media will not only have a marketing advantage, but might also be able to more effectively reach and help participants. The younger generation of investors expect it. But until the rules are updated and firms feel comfortable allowing their advisors to participate — or there is software that adequately allows them to monitor activity — the struggle between gravity and inertia will prevail. Any innovative solutions that you’ve found? Share them in the comment box below.
