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Legal Issues of Social Media
Confidential and Proprietary © 2012, Actiance, Inc. All rights reserved. Actiance and the Actiance logo are trademarks of Actiance, Inc.
Utilities & Energy Compliance & Ethics Conference:How Social Media Compliance Can Grow Your Business
Joanna BelbeySocial Media and Compliance Specialisthttp://www.linkedin.com/in/belbey@belbey
Joanna Belbey
Social Media and Compliance Specialist
FINRA Education Department
Running training firm
I help regulated firms use social media while complying with the regulations
Twitter: @belbey, @actiance
LinkedIn: http://www.linkedin.com/in/belbey
My biggest challenge?
Why are we presenting to you today?
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Agenda
About us
Changing landscape
Social Media Maturity Curve
Early successes
Regulatory landscape
What can go wrong
6 keys to social media success
9 things you can do to get started
Materials
A decade of expertise, a history of firsts
Global Operations
• Three US offices• Three continents
Dedicated Social Engagement Team
• Partners: Networks, Platforms, Service Providers
• Best Practice enablement and education
Client Engagement
• 3 of the top 5 energy companies
• 9 out of the top 10 US banks
• 84,000 social networking users under license
About Actiance
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Internet Application Usage: Perception vs Reality
Perception: 62% of IT Professionals estimated social networking was used within their corporate network
Reality: 100% used social networking
Perception: 60% of IT Professionals estimated IM was used on their networkReality: 98% used IM
Actual customer traffic history (150+ organizations)
Representing all Internet activity from over 150K end users
Social media is exploding
Source: “The Growth of Social Media: An Infographic,” Search Engine Journal, August 30, 2011
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Social Media Maturity Curve
Pre-Consideration
• No Social Presence
• Restrictive socialpolicy
• No Social Tools
• Need to: identifyoptions, best practices
Early Consideration
• Some CorporatePresence
• Banned/ restrictivepolicy in place
• Pilot program forcontent distributionmight be in place
• Need to: justifydistributed teamsusage
Early Adopters
• Corporate Presence
• Acceptable use policy
• Social media being used by distributedteams/advisors
• Need to: use social todevelop, strengthenrelationships, forsome also as a saleschannel
Early Majority
• Corporate SM presence
• Social media usageby distributed teamsadvisors
• Acceptable use policy
• Next step, use socialto develop, strengthenrelationships, for some also as a sales channel
• Previous concernsabout FINRA and/ orimpact of social mediaovercome by marketacceptance anddemonstrable results.
So who’s using Social Media? And Why?
Sales & Marketing Promotions Advertising Branding Financial Advisors / Producers
HR Background checks Recruiting
Scientists & Researchers Information exchange Collaboration
IT Investigation of security breaches
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Opower
– Working with Facebook to develop an app to let customers share and compare their energy use on the social media platform
DTE Energy
– Teamed up with the Detroit Red Wings on a campaign combining event marketing with social media to promote energy efficiency and reach new customers. Naming eaglets born on their property
– Grew the utility's social media presence from 250 fans to more than 7,500 in just two weeks
Puget Sound Energy
– The utility’s customers can use Twitter and Facebook to report outages
Memphis Light, Gas and Water (MLGW)
– Twitter for power outages, emergencies, customer service, engagement
Basin Electric Power Cooperative
– Twitter for company news, careers, highlights strengths, engagement
Social media success stories in Energy & Utilities
And some early successes in Financial Services
UK’s Largest Corporate Bank now enables clients to engage with each other and the Bank in an online community.
An FA at a major wire house client noticed a new LinkedIn client changed her status to “retired”, in mailed her, and ultimately won a $2.75m new account
An FA at a regional wire house client landed a $1m new account after only 93 tweets of moderated content were sent through Socialite
An FA at a national wire house client with deep energy industry experience and new to the wealth management world, used LinkedIn securely through Socialite and in a few weeks constructed a network of 400+, global energy industry contacts he could then effectively prospect to
At Raymond James, 1000 FAs signed on to use social media through Socialite in the first three weeks of its enablement.
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e
Risks of Using Social Media and Web 2.0
Data Leakage
Personal Information
Intellectual Property
Credit Card, SSN
Client Records
Incoming Threats
Malware, Spyware
Viruses, Trojans
Inappropriate Content
Compliance & eDiscovery
SEC, FINRA
HIPAA, FISMA
SOX, PCI, FSA
FRCP- eDiscovery
FERC, NERC
User Behavior
Employee Productivity
Bandwidth Explosion
Every employee is the face of business
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Overview of Regulation & Compliance
Federal Energy Regulatory Commission (FERC)
– Record keeping / ethical walls (marketing and transmission functions)
North American Electric Reliability Corporation (NERC)
– NERC Critical Infrastructure (CIP) Standards / protect and monitor systems, networks, ongoing testing, disaster recovery plans
Commodity Future Trading Commission (CFCT)
– Prevent fraud by traders / governs communications, supervisory procedures for email, websites, social media in communicating with the public
National Futures Association (NFA)
– Supervision / monitoring forum / communities where futures or forex discussed to prevent misleading content, electronic communications and communications with the public and promotional material
Energy and Utilities Regulations
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What Can Go Wrong?
Gulf of Mexico BP Oil Spill
Fake ExxonMobile employee tweeting ‘brand jacked’
Jenny Ta
Fedex & Ketchum
Nestle & Greenpeace
Relevant ContentPersonal BrandIntegrated Strategy
Measure & AnalyzeEducate and TrainCrowdsource
Best Practices: Six Keys to Social Media Success
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What can you easily do to mitigate risks
1. Understand your firms landscape, get visibility.
2. Engage stakeholders in policy setting. Set the policy.
3. Consider and address the risks, in a granular fashion.
4. Protect your network from malware, phishing, attacks, data leakage
5. Issue and implement best practice guidelines.
6. Understand and manage the fallibility of human beings.
7. Record and retain (appropriate) communications.
8. Provide education for your users on acceptable and appropriate use.
9. Review and refine policies (regularly).
To infinity….. And beyond..
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Request a demo or evaluation
www.actiance.com
(888) 349-3223
@Actiance
Further reading
“The Impact of New Communications for Firms in the Energy Industry” whitepaper
Actiance Collateral Library http://actiance.com/products/collateral-library.aspx
Next Steps
Thank You
Joanna BelbeySocial Media and Compliance Specialisthttp://www.linkedin.com/in/belbey@belbey
