Social Media Adds New Dimension for Advisors
While more advisors are using social
media, broker-dealer reps and wirehouse
brokers use it more frequently and see it
as a more valuable business-building tool
than do registered investment advisors,
according to a just-released study by
American Century Investments.
Roughly half of the 301 advisors surveyed use social media for business purposes on a daily or weekly basis, compared
with only 21% of RIAs, the study found.
Most RIAs do not use social media for
business purposes at all, compared with
66% of other advisors who are using
social media for business purposes.
Some 62% of financial advisors at wirehouses and BDs have scheduled a meeting
in the past year as a result of social media
versus 35% of RIAs, the study found.
Nearly one in five BD and wirehouse
advisors have scheduled more than 10
meetings in the past year from social
media, compared with only one in 20 RIAs.
“We found that 57% of advisors now use
social media in their practice, versus only
25% in 2010,” said Diane Gallagher, vice
president of client marketing for American
Century Investments, in releasing the study
results. “Furthermore, 63% of advisors
now have a social media program at their
company, up from 53% in 2011. This says
The study also found that older, more
experienced advisors use social media
more than their younger counterparts.
According to the study, 85% of advisors
with five to 20 years of experience use
social media for business purposes, while
only 44% of less-tenured advisors do.
Also the study said, “almost four in five
medium-tenured advisors have increased
their assets under management in the
past year by using social media, while
only two of five other advisors have.”
“Advisors with more in-depth training
used social media more frequently; over
half with advanced training used it daily.
Also, advisors with advanced training were
able to get in front of key decision-makers
using social media that they otherwise
could not at a much higher rate than with
basic training alone,” the study found.
New Tech for New Rules
Hearsay Systems announced that it has
launched a new consulting practice,
Hearsay Compliance Advisory Services,
to help financial services firms comply with industry regulations like the
Securities and Exchange Commission’s
Regulation Best Interest and the Financial
Industry Regulatory Authority’s recently
enacted Advertising Rule 2210.
“As new technologies permeate the
financial services industry, compliance
issues become more complex. With a
constant influx of new regulations and
guidelines, organizations are often lost
on how to expand existing programs to
meet new compliance requests and when
to adopt new technologies and prac-
tices,” said Donna Prlich, Hearsay’s chief
The new compliance services plans to
help customers navigate this landscape by
providing both technical and subject matter expertise to optimize Hearsay’s data-driven, customer-centric digital solutions
to customers’ risk profiles.
The services, which are customizable,
• Discovery and Risk Assessment: A
well-defined lexicon enables compliance
program administrators to efficiently and
effectively oversee advisor content.
• Compliance and Supervision Training:
To help Hearsay compliance administrators increase their value, the new group
has created its own certification program
in compliance administration. This offering shows exactly how compliance for the
Hearsay platform can be used to support
digital marketing programs through the full
client-advisor/agent life cycle.
• Compliance Analytics and Reporting:
To help advisors engage with their clients
seamlessly, Hearsay partners with teams
to analyze their compliance policies and
supervision processes to minimize the
firm’s risk while ensuring an efficient client engagement experience for advisors.
• Compliance Resource and Technology
Optimization: As organizations evolve
and policies and procedures shift,
Hearsay configurations also may need
to change. As such, Hearsay partners
with teams to reconfigure their supervision dashboard, ensuring that the review
process meets the needs of the program.
The tech firm also can update fields on
advisors’ social media profiles to ensure
they are in compliance.
INVESTMENT ADVISOR (ISSN 1069-1731) is published monthly ALM Media, LLC, 4157 Olympic Blvd. Ste 225, Erlanger, KY 41018-3510. Periodical postage paid at Covington, KY and additional mailing offices. Subscription Rate is $79 per year.
POSTMASTER: Send all subscription orders, changes of address and correspondence to InvestmentAdvisor, PO Box 3136, Northbrook IL 60065. Allow four weeks completion of changes
NEW THIS MONTH THINKADVISOR.COM TECHCENTER LIVE EVENTS WEB EXTRAS DIRECTORIES BLOGS
FOR ALL THIS AND MORE WEB EXCLUSIVE CONTENT PLEASE VISIT THINKADVISOR.COM