Social media channels provide financial institutions with a unique opportunity to engage in helpful two-way communication with customers, prospects, employees and critics.
However, communicating with customers through social media carries its own regulatory and compliance concerns, especially for financial institutions. Is social media considered advertising? Which regulations dictate what institutions can and can’t say? The answers are not cut and dried, but understanding the compliance framework around social media is a critical first-step toward lowering your organization’s risk.
Know These Key Social Media Regulations
First and foremost, your social media content must meet federal regulations. And although marketing laws do not directly address social media requirements for financial institutions, many existing laws and regulations specific to the financial sector treat the internet—including social media sites—as a marketing channel. This means that all requirements that would apply to your organization’s website also apply to your social media accounts. So how do you go about leveraging social media while ensuring proper compliance?
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