Find your Financial Advisor on Facebook

Yet another study of financial professionals – this one by American Century Investments – finds that advisors are using and benefiting from social media for their business.

• 44% of advisors who use social media for business or business and personal use agree that social media is an emerging trend with significant potential for businesses like theirs.
• 73% of the participants have a profile or account with one or more of the social media types mentioned.
• Facebook was in the top position with 55% and LinkedIn was next with 46%.
• Of those who use social media for business purposes, almost one-fifth (19%) do so daily – either once a day or multiple times a day.
• Respondents reported their top three business uses of social media as: A) researching people (e.g. prospects, contacts and current clients); B) monitoring industry and market news; and C) reading expert commentary and insights.
• 71% reported they have one or more future business uses planned for social media, primarily monitoring industry and market news, followed by reading expert commentary and insights and researching people.

So what keeps them up at night?

Nearly half (47%) of respondents named regulatory or compliance issues as their single biggest concern with using social media for business purposes.

“Understanding how to better navigate compliance guidelines and industry regulations on social media use could bring peace of mind to financial professionals and spur adoption of its use,” Jennifer Sussman, director, Online Marketing and Experience for American Century Investments, said.

The rest of the study continues to show that financial services representatives are ready – or already using – social media, and their concerns about compliance are holding them back. Of course, the firms that figure out – and efficiently execute – their compliance plans will enjoy the competitive advantages of being first to market with this invaluable channel.

If you are looking to educate yourself on the compliance issues raised by social media sites you can start with a few of the resources below. In addition, check back in about a week for details on our own study of Financial Advisors use of social media.

• The Companion Guide to FINRA/SEC Social Networking Compliance
• The Guide to Twitter Social Networking Compliance
• Previously recorded and upcoming webinars on issues of compliance to social media best practices

We hope these resources help you navigate the compliance risks and opportunity in the waters of social media.