Personal New Year’s resolutions may already have been cast aside, but Australian financial advisers should be thinking long and hard about their online presence and use of social media in 2013.
Both research and anecdotal evidence suggest that planning practices and dealer groups are resisting implementing a social media policy for a variety of reasons.
For some it is a bridge too far in terms of their technical abilities while, for the majority, it is still seen as a nice-to-have rather than a must-have.
Negative media reports involving social media backlashes on Twitter and Facebook reinforce this conservative approach and discourage some planners from taking the plunge.
Is the tide turning?
On the www.journalism.co.uk website, Steve Herrmann from BBC News online has urged journalists to embrace change in 2013 and his message is just as relevant to financial advisers.
“If you don’t love change you are going to be a very stressed out individual because things change so quickly,” he said. “Whether it is the tools that we use or the way in which audiences get their information, it’s changing all the time and you have to love that otherwise it’s going to get you down.”
Done correctly, engaging in social media activities can be a wise and rewarding decision and activity for financial advisers.
However, Claudio Pannunzio, president of the US-based i-Impact Group, cautions financial advisers to be aware of the many issues that need to be addressed prior to deploying a social media communications strategy.
“One of the most important issues is implementing a sound social media policy that provides a blueprint for interaction and establishes clear rules to ensure proper adherence to regulatory and compliance requirements,” he said.
“In addition, a social media policy can do more than just prevent potential problems for the practice. It can assist employees to be more closely aligned with the business objectives and facilitate a more proactive role by staff in the attainment of strategic goals.”
What is a social media policy?
Pannunzio says the goals of a social media policy should be to: establish rules and procedures for all users when using social media sites; facilitate users’ understanding of their responsibilities when engaging in online communication; and promote and maintain compliance with applicable rules and professional association guidelines.
He suggests the below as “basic components” financial advisers should consider when creating a social media policy for their practice:
1. State why your firm is engaging in social media and the scope for putting in place a policy governing its use. This will help everybody in your organisation attain a solid understanding of the reasons behind the firm’s social media engagement.
2. Define what you and your firm regard as social media and how your firm will leverage the various social media platforms to communicate with its external audiences.
3. Determine the professionals authorised to contribute to social media sites on behalf of your firm, specify what activities these individuals should be engaged in and establish who will be in charge of monitoring their activities.
4. Select the professionals responsible for creating social media content and establish posting guidelines and schedules.
5. The information you will provide via social media platforms is of critical importance. Clearly spell out the type of information that can and cannot be divulged via social media, unmistakably emphasising what is considered proprietary or confidential information.
6. Establishing a code of conduct will help you achieve two strategic goals: ensuring that communication is consistently transparent, ethical, accurate and adheres to compliance rules; and preventing employees in their personal social media interactions from inadvertently or casually stating their affiliation to your firm without your formal approval, knowledge and control.
7. Establish general guidelines and best practices for the different platforms your firm is planning to use, referring to the appropriate compliance and disclosure regulations. Create a list of subjects that should never be discussed and/or posted on social media, such as confidential information, financial details, legal matters and proceedings, as well as libelous or defamatory information, obscene images/content, information infringing third party intellectual property rights, copyrights or trademarks.
8. Develop a well-defined protocol on how to handle a third party’s negative posts/comments on social media platforms. These can include tactics such as acknowledging the negative comment and offering a solution; immediately deleting inappropriate comments of threatening, profane or obscene nature; or setting up social media accounts to not allow any posts/comments.
“In a very short period, social media has moved from ‘nice to have’ to a necessary component of a financial adviser’s marketing and communication strategy as the medium offers opportunities to engage in conversations with clients, potential customers and communities with shared interests,” said Pannunzio.
“A clearly defined social media policy that articulates the company’s guidelines, expectations, standards (including behaviour) will address potential issues by providing the parameters that will safeguard the business and its employees.”
