According to an article in Financial Advisor magazine, while many advisers say they would love to make greater use of social media, they claim they are barred thanks to the regulatory climate. According to the article, advisers point to the SEC and FINRA alerts and guidelines on social media compliance over the last few years. One example can be found in the SEC’s Risk Alert issued in January. According to that Risk Alert, investment advisers that use or permit the use of social media by representatives, solicitors and/or third parties should consider periodically evaluating the effectiveness of their compliance program as it relates to social media. In this regard, the agency is prompting firms to create usage guidelines and content standards for their employees, as well as sufficiently monitor and approve the content and training. According to the article, in order to comply, advisory firms are hiring personnel specifically to confirm that employee communications posted on social media websites are permissible. The article notes that one of the issues is that while larger institutions may have deep pockets to put the resources in place to ensure compliance with the regulatory requirements, smaller and medium-size firms are taking the position of not using social media websites because of the cost and time needed to monitor compliance.