Brokers May Use Social Media to Reach Clients, FINRA Says

Broker-dealers may use social media platforms to communicate with clients, as long as certain requirements are satisfied, the Financial Industry Regulatory Authority said in recent guidance.

Firms must retain records of communications with clients through text messaging apps, FINRA said. It also said the use of “native advertising” is permitted as long as it discloses the firm’s name, any relationship between the firm and any other entity and whether the products or services mentioned are actually offered by the firm. Native advertising is advertising content that matches the form and function of the platform on which it appears.

Finally, ...