A presentation on Social Media regulation for financial services as delivered in Boston on September 19, 2013. Follow LIMRA_CRS on Twitter @LIMRA_CRS! Feel welcome to send feedback or questions to sselby@limra.com
2. Presenters
• Panelists:
• Antoine M. Devine, General Counsel & Chief Compliance
Officer, Covestor, Lt.
• Paul M. Tyrrell, Counsel, Sidley Austin LLP
• Timothy J. Dwinal, Vice President, Natixis Global Asset
Management
• Moderator:
• Stephen Selby, AVP Social Media, Audit, Regulator
Relations, LIMRA
3. Review FINRA Rule 2210 and
Regulatory Notice 12-29
• Institutional vs. Retail vs. Correspondence
• Review and Approval
• Research Reports under Rule 2711. “Research
Analysts and Research Reports” in the context of
Rule 2210 and social communications
• Suggested reading SEC Reg. FD
4. Record Retention
• PART 240--GENERAL RULES AND
REGULATIONS, SECURITIES EXCHANGE ACT
OF 1934 §240.17a-4
• Related record retention regulations as applied to
social communications
5. SEC IM Guidance Update No.
2013-0111
• Review the SEC’s Division of Investment Management
issued IM Guidance Update No. 2013-0111
• SEC filing requirements for certain fund-related
interactive content.
• “Social” content as found in chat rooms and social media
such as Facebook and Twitter, and set forth certain
subjective criteria which can be used to determine
whether communications need to be filed.
6. Review National Examination
Risk Alert: IAA Use of Social
Media (1/4/12)
• Compliance Program Related to the Use of Social Media
• Third-Party Content
• Recordkeeping Responsibilities
7. Review Social Media Privacy
Issues
• Regulation SP
• Employer Access to Social Media Usernames and
Passwords 2013
• Recent state laws concerning employee privacy as
applied to broker dealer and investment advisors
• Case study: Focus on Massachusetts
8. FINRA Targeted Exam Letters
• Spot-Check of Social Media Communications (June 2013)
o An explanation of how the firm is currently using social media
o Firm use of social media
o Explain how the firm's RRs and associated persons generally
use social media in the conduct of the firm's business
o The portion of your firm's WSPs concerning the
production, approval and distribution of social media
communications
o What measures has your firm has adopted to monitor
compliance?
o A tabular list of your firm's top 20 producing RRs (based on
commissioned sales).
9. NAIC & Social Media
• Material differences between NAIC and securities
standards
9
10. Q & A
• FINRA Regulatory Notice 12-29:
• http://www.finra.org/web/groups/industry/@ip/@reg/@notice/do
cuments/notices/p127014.pdfRecord Retention
• SEC National Examination Risk Alert:
• http://www.sec.gov/about/offices/ocie/riskalert-
socialmedia.pdfReview the SEC’s Division of Investment
Management issued IM Guidance Update No. 2013-0111
• Review National Examination Risk Alert: IAA Use of Social Media
(1/4/12)
• Review Social Media Privacy Issues
• FINRA Targeted Examination Letters
• NAIC White Paper: The Use of Social Media in Insurance
11. 11
Contact Information
STEPHEN SELBY
LIMRA
Office Phone: (860) 285-7858
sselby@LIMRA.com
Twitter @LIMRA_CRS
PAUL M. TYRRELL
Sidley Austin LLP
Office Phone: (617).273-8189
ptyrrell@sidley.com
ANTOINE M. DEVINE
Office Phone (866).825.3005, ext. 704
Cell Phone (480).772.1782
covestor.com
antoine@covestor.com
TIMOTHY J. DWINAL
Natixis Global Asset Management
Timothy.Dwinal@ngam.natixis.com
Lead: PaulPART 240--GENERAL RULES AND REGULATIONS, SECURITIES EXCHANGE ACT OF 1934 §240.17a-4 http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&SID=8978c92eb519b870d408b302d3ca98f9&rgn=div8&view=text&node=17:3.0.1.1.1.2.104.413&idno=17
Lead: Antoine
Lead: AntoineNational Examination Risk AlertBy the Office of Compliance Inspections and Examinationshttp://www.sec.gov/about/offices/ocie/riskalert-socialmedia.pdf
Lead: AntoineRecent state laws concerning employee privacy as applied to broker dealer and investment advisorshttp://www.ncsl.org/issues-research/telecom/employer-access-to-social-media-passwords-2013.aspxReport on Massachusetts Registered Investment Advisers' Use of Social Mediahttp://www.sec.state.ma.us/sct/sctmediasurvey/socialmedia.pdf andMassachusetts Guidance on the Use of Social Media by Investment Advisers January 18,2012http://www.sec.state.ma.us/sct/sctpdf/The-Use-of-Social-Media-by-Investment-Advisers.pdf