Brokers Are Now Using Social Media
Morgan Stanley Smith Barney is the first and one of the largest U.S. retail brokerage, to allow its brokers to use Twitter and LinkedIn.
Next month, a test group of 600 Morgan Stanley Smith Barney advisers will be allowed to use LinkedIn,Twitter, and start some blogging services. In six months the group is going to expand to almost 2,000.
“The emergence of social media has changed the way in which people communicate with each other and companies interact with clients,” Morgan Stanley Smith Barney U.S. wealth management boss Andy Saperstein said in the memo.
Wall Street has been slow to let their brokers participate.
Communication with brokers to clients or to the public is monitored so they don’t get scammed with false advertising, or with misleading advice. E-mail and Phone calls are more than likely screened.
To stay with the strict rules of wall street Morgan Stanley Smith and Barney will install technology to capture and retain all communication on approved social media platforms. The social media platform the company will mainly use is LinkedIn.
Brokers will be allowed to distribute research and content, such as status updates and tweets, but again only those approved in advance by the firm, such as official company views on market outlook or specific events, the spokesman said.
“Social media has been regarded mostly with trepidation by brokerage firms because of FINRA’s strict compliance guidelines, but social media can be an asset to existing clients and a vital way to reach potential clients,” said Stacey Haefele, chief executive of marketing firm HNW.
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