Investing Guide at Deep Blue Group Publications LLC Tokyo: Social Media Tips for Investment Managers
The rise of social media platforms
like LinkedIn and Twitter has
been unprecedented over the last couple of years. LinkedIn now has some 313
million users and in Q2 2014 its revenues rose by 47 per cent to USD534m
reported the Wall Street Journal on 31 July 2014.
McKinsey estimates that there is a
GBP772bn opportunity for business to use social media.
All of us use social media in one form or another but
when it comes to applying it to the workplace, the asset management industry
has remained largely apathetic. This would appear to stem from a fear of
falling foul of compliance in what has become a tightly regulated market.
One of the pillars of any asset
manager’s marketing strategy today should include social media but it’s
important to understand the potential roadblocks. This prompted SEI recently to
publish a brief on the subject entitled “Stepping in to Social Media”, in
which eight tips and considerations are presented for investment managers.
“I think it’s true to say that all
asset managers have been reluctant to get into social media. From a compliance
perspective, there’s a lot less control over the way information is broadcast
and who you, as a firm, are communicating with,” says Lori White (pictured),
Marketing Regulation Counsel, SEI. “The reluctance has largely been from
compliance officers as they look to get comfortable complying with existing
regulation.”
The Financial Industry Regulatory
Authority, Inc. (FINRA) published more substantial guidance recently and the
Financial Conduct Authority (FCA) in August this year established the Social
Media Charter in light of the fact that 71 per cent of employees at financial
firms had breached their firms’ social media policies.
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