OnWallStreet reports that despite the fact that social media is considered critical for marketing and growth of financial advisory practices, a significant number of advisors are still concerned about compliance issues relating to its usage. In a survey released by Peak Advisor Alliance more than half of the 200 respondents consider social media as beneficial, but view the compliance risk as daunting. Yet 55% of those polled think their biggest marketing challenge is differentiating their practice and generating new business, for which social media platforms, such as LinkedIn, Twitter, and Facebook, are critical.
According to the survey, 66% of respondents are not engaged in any form of social media to promote their business. LinkedIn seems to be the platform advisors think can be the most helpful for their business. Forty percent of those polled reported that they know how LinkedIn can help their business, with over 60% using the service either personally or for their business. Meanwhile, 88% of respondents are unsure as to how to utilize Twitter to help their business. Only 10% use Twitter to monitor news.
As much as advisors want to use social media for their businesses, 57% believe FINRA’s reaction to the use of social media by advisors is appropriate.