Does anyone else think it ironic that the Financial Industry Regulatory Authority (FINRA) in the US tweeted about its guidance on monitoring brokers’ use of social media sites? It’s a bit like supermodels declaring they can eat what they want while their hip bones, protruding through their jeans, tell us a different story.
FINRA says securities firms and brokerages must develop policies and procedures to ensure their personnel comply with regulatory requirements while using social networking sites.
In reality, that means some poor schmuck in compliance will likely be forced to read the weekend antics of his colleagues, complete with pictures of hapless individuals only a mother could love, and trawl through inane updates, such as, ‘Just had lunch. Peanut butter and jelly on rye. My favorite. Anyone see the Yankees last night? Go Yankees, go.’
I apologize for such blatant stereotyping. Obviously, if the Financial Services Authority had issued such an edict, UK compliance officers might be reading, ‘Watched United last night. Disaster. Had five pints and bag of pork scratchings to combat pain. Threw up on friend’s floor. Result!’
Of course, this is an unintended consequence of the new guidance. FINRA is not trying to address the use of social networking sites for personal reasons, only business purposes. And therein lies the rub.
When it comes to social networking sites, only LinkedIn seems destined to serve purely as a business networking operation: it’s all about the connections. But Twitter and Facebook are different; there, most people have as much difficulty separating personal and business use as Tiger Woods had in recognizing which of the 15 blonde women was his wife.
Every day the newspapers are filled with stories of some shocked – but ultimately clueless – individual who has been sacked after ‘befriending’ his or her boss on Facebook, only to bitch about said boss to real pals in the accompanying chat rooms.
The distinction between work and private lives is blurring. Firms want to communicate with their stakeholders in a refreshing and engaging way, but issuing updates on the latest batch of widgets rolling off the production line is not the way to achieve this. That’s why companies offer updates on their staff nights out, the fun and games they are having in the office – while still taking a serious attitude toward work, obviously – and their latest business wins. Staffers are encouraged to tweet about everything from the weather (especially in England) to their favorite bands.
It seems inevitable that brokers will start tweeting from their trading desks, trying to establish a connection with their clients to gain a competitive advantage. It seems equally inevitable that somebody will cross the line. Apart from obvious cases, like tweeting insider information, however, the trouble with lines such as these is that it’s only once they have been crossed that anyone realizes they exist.
Tweeting that Donald Trump is in your office, for example, might seem innocent, but if he is there to discuss a confidential business transaction… sadly, you’re fired!
