Full speed ahead: FINRA social media regs remove “excuses for delay”

Feb. 16, 2010 - PRLog -- The release of FINRA’s 10-06 ruling has removed the last impediment to utilizing the cost-efficiencies and creativity of social media programs.

“We’re seeing new levels of enthusiasm among marketing communications project managers,” said Zach Hedges of Advisolocity recently. “Marketers on a tight budget see sunlight through the clouds.” He credits freeware networking site Linkedin, Twitter and WordPress for a lot of the newly regained optimism.

Simultaneously, FINRA 10-06 has managed to strike a blow for common sense, fiduciary responsibility and freedom of speech.

While compliance officers and investment marketers decode FINRA 10-06, financial advisors are embracing the new regulatory clarification. According  to a Rydex AdvisorBenchmarking survey, advisors are looking to primarily use social media tools for “securing new clients (46%), enhancing communication with current clients (35%), and advertising or promoting their firms (30%).”

Financial research firm Nemertes signals happy days for thrifty marketers too in an online report: “The new guidelines bring clarity, but remove excuses for delay.”

However, Nemertes cautions the tidal wave of consultants, archivists, communications specialists, compliance firms and social media strategists, to get busy carefully: “Plan to converge or add social media features and capabilities with security solutions for communications media like email and IM.”

Meanwhile, the legal profession is hard at work decoding 10-06 for peers and marketers. Winston & Strawn’s Robert Boresta is scheduled to speak at Knowledge Congress’ Live Webcast on FINRA Guidance on Social Networking Sites on May 4.

Will low budgets prevent marketers from taking advantage of all of this good news? "No. Marketers can no longer afford to overlook the cost-efficiency of social media. It's just too goshdarn cheap," said John Drachman, editorial director, The Drachman Group. "The question has shifted from 'will you or won't you use social media networking?' to 'will you be an early or late adapter?'"

Social media types can also breathe easier following a new study quoted by Marketing Pilgrim that while 40% of marketers report budgets down for the year, 70% plan to redeploy their resources from traditional print and advertising to Twitter and Facebook marketing.

The resource shift is sure to accelerate as marketers and compliance officers now find common agreement.

The last impediment to utilizing the cost-efficiencies and creativity of social media programs has been removed. Can financial marketers expect a new social media compliance lore to come into existence? Distribution consultant, D. Bruce Johnston of DBJ Associates thinks so: “Responsible, spontaneous, transparent communication can do a lot to put back the heart in this troubled (securities) industry.”

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