7 steps to social media compliance
To cap off a year packed to the brim with new and proposed regulations, the Federal Financial Institutions Examination Council (FFIEC) issued guidance on financial institution (FI) use of social media. The gist of the guidance is that established laws and regulations apply to social media just the same as they do to other channels.
It will be important for compliance and marketing teams to connect and review the FFIEC’s comments to establish best-practice policies for communication via Twitter, Facebook, Google+, Pinterest, Instagram and still-emerging social platforms.
Specifically, the FFIEC recommends the following seven components be included in a risk management program as it relates to use of social media:
- A governance structure with clear roles and responsibilities and direction for how social media contributes to the strategic goals of the FI
- Policies and procedures for the use and monitoring of social media and compliance with all applicable consumer protection laws and regulations
- A risk-management process for selecting and managing third-party relationships in connection with social media
- An employee training program that incorporates policies and procedures
- An oversight process for monitoring information posted to social media sites
- Audit and compliance functions to ensure ongoing compliance
- Parameters for providing appropriate reporting to the FI’s board of directors or senior management that enable periodic evaluation of the effectiveness of the social media program
