YouTube & Compliance: Setting the Record Straight for Financial Advisors

Just after the clock struck midnight and we headed into 2014, we asked financial advisors what questions they wanted answered in the New Year about using social media in the financial services. You told us, and we listened! In this week’s blog we shed some light on YouTube use in a restricted industry. Can financial advisors take advantage of YouTube? Yes! How can you stay compliant? Read on!

Why YouTube?

The power of video: We’ve said it before, and we’ll say it again: video is a highly effective medium that can allow you to create engaging content that reaches the masses. Did you know:

60% of boomers and 40% of seniors say watching online video on sites like YouTube has become an important part of their day. 75% of boomers and 68% of seniors report taking some sort of action after viewing a video. (from Media Post)

41% of seniors were encouraged by an online video to share a link of the video to someone. (from Media Post)

Get on Google’s good side: Because Google owns YouTube, it’s no secret that using their products will increase your SEO and brand visibility.

Am I Allowed to Use YouTube?

Yes, of course! But just like other social media platforms, such as Facebook and LinkedIn, there are guidelines. It all comes back to the static versus dynamic content conversation. Static content includes your advisor website and social media profiles (not the feed). Videos can also be considered static content since they are a singular event that is unchanging. Static content needs to be approved by your compliance department in advance to publishing it. Most social media activity is considered dynamic content as it is unscripted and usually involves some type of real-time interaction. Facebook posts and tweets are considered dynamic content. Any communication that can be commented on is usually considered dynamic also. This type of content does not need to be pre-approved, but it does need to be archived. As you can see, YouTube is in somewhat of a gray area because it’s both a video and part of a social media platform.

Remember the case last spring about the RIA who was fined $10,000 by FINRA for the misuse of posting videos on YouTube about annuities? (Read More Here ) It’s no wonder we get so many questions about compliant YouTube use. As social media continues to evolve, so does the way financial advisors are using these platforms for marketing and their regulations. Therefore, if you want to get on YouTube, get out there, but make sure you’re following the rules.

So, What Can I Do To Remain Compliant?

Before you dive in, double check with your own compliance department to find out what is and isn’t allowed.
Treat YouTube videos as static content: Submit a script for pre-approval to your compliance team and turn off the comments and thumbs-up/thumbs-down functions.
Archive.
Add a Disclaimer.
Include YouTube use in your company’s social media policy.
Let investors know that YouTube (and your other social networks) will be used for company announcements. In April 2013, the SEC announced that companies can use social media for company announcements, as long as investors have been informed of what types of social media will be used for this communication. (Learn More)
The golden rule of social media: Don’t do anything on social media that you wouldn’t do off of social media. This includes language that you wouldn’t use on your website, or in an educational seminar for your clients.
Share! When you make a YouTube video, embed it on your blog and link to it on your Facebook and Twitter feeds. The best part of YouTube is that it’s so easy to get your content out there on the web for more people to see.
Have fun with it and get creative! Remember social media is all about showing your personality. Had a fun team-building experience? Moving into a new office? Take us on a virtual tour a la Bryan Weiss: Watch Here.

Do you have a YouTube account for your business? Is it in your marketing forecast for 2014? We would love to know! If you have any more questions about social media and compliance, the experts at Financial Social Media are here to clear up any confusion and get you started on the (compliant) path to social media success!

Please Note: This article is for informational purposes only. We strongly encourage you to verify any content and information you use with your own compliance department or legal counsel.

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Amy McIlwain

President at Financial Social Media

Author, speaker, and President at Financial Social Media, Amy McIlwain speaks at events around the world ranging from audiences of 1000 to small executive boardrooms. She's appeared on FOX, CBS, ABC, and NBC as a social media expert and her book, The Social Advisor: Social Media Secrets of the Financial Industry, has been featured as a best-seller in the Amazon business category. Hire Amy to speak at your next event! Visit www.amymcilwain.com

@amymcilwain

International Speaker, Author, Financial Social Media Expert, VP Social & Digital @MooreCommGroup. Former DI Soccer Player, Avid Traveler & Clumsy Salsa Dancer.