Financial adviser & stockbroker blogs : Are there unique compliance or regulatory issues on publishing?
I'm talking to a few financial advisers and stockbrokers who are considering blogs for themselves and their firms.
As is the case with lawyer blogs with ethical and liability concerns, are there unique regulatory, compliance, or ethical implications for financial advisers/stockbrokers publishing blogs? With securities I thought there may be issues regarding adequate disclosures, disclaimers and the like. I did some quick searches on Google and did not find anything.
If anyone is aware of such regulations, concerns, or knows of Internet sources for such information, please drop me an email or leave a comment. Thanks much.
Kevin, An excellent overview of Rules governance commmunications is provided via FINRA and their NASD Manual (http://finra.complinet.com/finra/).
One example regulation that governs communications - 3010d2 states: (2) Review of Correspondence: Each member shall develop written procedures that are appropriate to its business, size, structure, and customers for the review of incoming and outgoing written (i.e., non-electronic) and electronic correspondence with the public relating to its investment banking or securities business, including procedures to review incoming, written correspondence directed to registered representatives and related to the member's investment banking or securities business to properly identify and handle customer complaints and to ensure that customer funds and securities are handled in accordance with firm procedures. Where such procedures for the review of correspondence do not require review of all correspondence prior to use or distribution, they must include provision for the education and training of associated persons as to the firm's procedures governing correspondence; documentation of such education and training; and surveillance and follow-up to ensure that such procedures are implemented and adhered to.
Additionally, NASD Notice 3010 98-11 states in the guideline for supervision that: prohibit registered representatives' and other employees' use of electronic correspondence to the public unless such communications are subject to supervisory and review procedures developed by the firm. For example, NASD Regulation would expect members to prohibit correspondence with customers from employees' home computers or through third party systems unless the firm is capable of monitoring such communications.
Hope this information helps.
Regards/Rob Robinson
www.infogovernance.blogspot.com
Thanks much Rob, the section you reference appears to cover the vetting of content which I had heard of. Looks like just one area of concern.
'Section 2210 et al. Communications with the Public' appears to cover general communications through advertisements and the like. My guess is that's where the meat of things lie.
Problem is when I look at the provisions on their face, it looks fraught with peril. I am sure the rules governing lawyers look the same to those not generally familiar with them. However, meeting legal ethics rules has proved to be very manageable for blogging lawyers.
I'd welcome commentary from any securities blogger or from someone who has advised on the issue.