Many firms adopt policies that prohibit the practice. That might not appeal to advisors who are enthusiastic about using the sites to meet clients, but it could appease regulators.
Securities firms will continue to grapple with social-networking compliance until industry practices become more standardized, says Larry Goldfarb, senior sales director for Subserveo Inc., a Novato, Calif., trading surveillance company. Firms will eventually adopt more uniform systems for dealing with communication methods that are now easily accessed outside the traditional office framework, says Goldfarb, a former UBS AG compliance officer.
Regulators also will have a better grasp on the subject, says Goldfarb, when they hone in on the answer to a single question: Will there be an acceptable means in the industry for using these sites?
Copyright (c) 2011, Dow Jones. For more information about Dow Jones' services for advisors, please click here.