Commonwealth Rolls Out First Compliant Social Media Solution

Friday, April 22, 2011 05:44
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Commonwealth Rolls Out First Compliant Social Media Solution

Tags: Social Media

Commonwealth Financial Network has finished testing a social media compliance system from a company called Erado Message Control Systems.

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The 1,400-advisor firm was reportedly testing the Erado tools earlier this spring, but officially announced yesterday that it will roll out the technology starting in June.

 

Commonwealth thinks this is the first FINRA-compliant social networking system in the country. It will absorb the roughly $300 per advisor annual cost of using the tools.

 

How it works: Commonwealth will create a library of preapproved Tweets, Facebook updates, blog posts, and other content for advisors to draw from in their online activities.

 

Meanwhile, all activity -- from the most innocuous "like" to anything more substantive that could be construed as an investment recommendation -- will be logged for review.

 

Commonwealth explicitly picked Erado because it archives activity by username, not by computer.

 

This means that, for example, the protection would follow the advisor around from device to device, so any Tweeting you do on your daughter's iPad will be recorded, but if she checks her Facebook on your office computer, it won't.

 

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