by. Georgann Smith
The Federal Financial Institutions Examination Council (FFIEC) recently issued guidance titled “Social Media: Consumer Compliance Risk Management Guidance,” which applies to financial institutions (FIs) supervised by the new Consumer Financial Protection Bureau (CFPB).
Although the document does not impose any new regulatory requirements or duties on FIs, it does provide a road map for how existing regulations apply to FIs’ use of social media, including Facebook, Twitter and LinkedIn.
Where the increasingly ubiquitous realm of social media meets the highly regulated world of FIs, there was a need for the FFIEC to issue guidance to properly communicate its expectations. How FIs should assess the risks of using social media and how they can best craft policies to manage that risk are among the main points covered in the guidance.
The document states that a “financial institution should have a risk management program that allows it to measure, monitor and control the risks related to social media.” It also specifies the risk management program should provide guidance and training for employee use of social media.continue reading »