Compliance Archiving for Social Media

Overview

For businesses, social media is a powerful way to connect. Services like LinkedIn, Twitter and Facebook can deliver significant business value when connecting with clients, partners and colleagues. In the financial industry, the specific requirements of regulators like the SEC and FINRA can present a challenge — how can firms take advantage of social media while remaining compliant?

Compliant social media is the responsibility of every firm. Like other forms of electronic communication, social media is subject to SEC and FINRA compliance requirements. However, regulatory bodies have not issued new guidelines for each individual type of social media communication. Rather, social media fits into the framework of existing SEC and FINRA Rules. For example, FINRA Notice 10-06 (dated January 2010) advises that firms must ensure they have a solution in place to retain all records of social media communications as per SEC Rules 17a-3 and 17a-4 and FINRA Rule 4510.

Social Media Archiving: for compliance and security. Secure, automatic social media archiving is the solution to meeting compliance requirements for all types of electronic messaging - including social media messages. Capturing a permanent record of every communication is essential to preventing data leaks and lost messages. It is also crucial to ensuring your firm's preparedness for audits, eDiscovery requests and legal proceedings. Global Relay Archive for Social Media securely captures, indexes and archives social media messages from LinkedIn, Twitter and Facebook.

Benefits

One vendor — Global Relay provides a single end-to-end solution for social media capture, indexing, archiving, supervision, audit and eDiscovery. Since Global Relay Archive supports social media seamlessly, the need to manage a third-party social media solution in addition to your existing archive is eliminated.

Comprehensive Data Capture — Once a social media account is set up for archiving with Global Relay, the user's activity is captured no matter what location or device they may be using. Unlike proxy/middleware solutions, Global Relay captures social media content generated on home PCs, mobile devices, etc.

Seamless setup — All Global Relay solutions are quick and easy to enable at your firm. Once the system is set up, users' experiences on social media are not affected.

Which Regulations Apply?

Registered financial firms are responsible for ensuring their social media activities are compliant with regulatory requirements, including:

  • SEC 17a-3, SEC 17a-4, FINRA 4510 — Requirements for electronic message recordkeeping
  • SEC Rules 204-2, 206(4)-7 — Requirements for message recordkeeping & supervision
  • NASD 3010 — Firms must establish and enforce written procedures for communications
  • NASD 2310 — Financial recommendations made to a specific investor must be suitable for that investor
  • NASD 2711(b)(3)(A), NYSE 472(b)(3) — Firms' legal & compliance departments must be copied on communications about research report contents
  • FINRA Notices 10-06, 11-39 — Added guidance on blogs and social media web sites
  • FINRA Rule 2210(c)(6) — Firms are subject to specific requirements related to spot-checks that focus on social media usage, policies, and compliance
  • Additional rules and regulations may apply — Depending on the nature and purpose of the social media communication at hand