The restrictions upon human interaction caused by the global COVID-19 pandemic are compelling financial services firms to step up the amount of video content they share to social media. Video offers the next best thing to in-person meetings.
However, the uptick in social media activity and the concomitant regulatory compliance are causing firms to revisit social media compliance concerns, says Iain Duke-Richardet, compliance strategy principal at Hearsay Systems, during an FTF News Live interview. A solutions provider, Hearsay helps firms with the complexities of social media compliance.
“There are two things that in our view have reignited social media compliance,” Duke-Richardet says. “Firstly: the pandemic through three metrics that I want to quickly reflect on. We’ve seen about a 24 percent uptick in use by advisors in this year alone. Actually, our platform’s already processed 4 million social activities.”
In addition, Hearsay reports that last year “53 percent of our customers across the world posted over 247,000 videos through the platform. Lastly, nine out of 10 advisors have said that social changed the nature of their client relationships during the pandemic,” Duke-Richardet says.
“Secondly, this uptick in activity has drawn the attention of many of the regulatory bodies that govern financial services. Video does add a layer of complexity to the opportunity to engage and the SEC and FINRA have all put out notices during the last six months or so reminding financial services organizations and advisers of the obligations related to the use of this medium. What I expect that means is that the regulators are going to look at the policies and procedures, controls, and testing that firms have in place for their advisors to use this,” Duke-Richardet says.
Hearsay Systems recently announced that it has expanded support for Facebook and LinkedIn video across the Hearsay Systems Platform.
The interview also covered:
- How social media strategies are developed and driven by a complex workflow of marketing teams, compliance personnel, and other internal groups;
- The kinds of video content that financial services firms are producing;
- The learning curve for producing and distributing video content amid compliance;
- Common compliance concerns related to video content;
- And the new capabilities that Hearsay offers for video interactions.
Please check out a recording of the live event here: https://lnkd.in/e5W3NBE
FTF News Live is a new series of in-depth interviews with movers and shakers in the securities operations industry.