By Margaret Paradis, Thomson Reuters Accelus Contributor
NEW YORK, March 15 (Thomson Reuters Accelus) - The pace of social media usage by the U.S. financial industry has begun to rapidly accelerate. One drag on broader and deeper usage, especially by banks, continues to be uncertainty about regulatory compliance standards. Not all segments of the industry have been moving at the same pace. The broker-dealers and insurance companies have forged ahead in this area, relying on issued regulatory guidance. Additionally, asset management is catching up with the benefit of regulatory guidance issued early in 2012. Banking organizations, however, have been acting without specific guidance in this area, creating an extra risk.
In January 2013, the Federal Financial Institutions Examination Council (FFIEC) addressed this risk by proposing specific guidance for the use of social media by federally supervised banks, and certain nonbank entities (collectively, banks), called Social Media: Consumer Risk Management Guidance (PDF). (more…)