Your Company’s Policy On Engaging In Internet or Online Forums
Financial Services Professionals need to be keenly aware of the rules and restrictions when using the Internet. While on company computers i.e. personal computer or PDAs. The fact that an individual is registered subjects him/her to a higher standard than members of the general public. Given the fast-paced environment of chat rooms, casual or off-handed statements have the potential of crossing the line between being a reasonable opinion and an exaggerated or unwarranted claim. Because of the difficulties of supervision and the potential liabilities from participating in chat rooms, many firms limit or prohibit participation altogether.
Our Advice: Do not use chat rooms or forums (including these) to discuss client or potential clients financial or investment information. This is serious advice folks! No exceptions allowed. Also we strongly encourage you to check with your company(ies) compliance polices and review all materials on the use of Chat Rooms, Forums and Linking to Other Websites. Forum Rules and No! Nos!
Validating Activities In Chat Rooms, Forums and Linking to Other Websites
Companies’ Code of Conduct and Guide to Electronic Communications may prohibited you from engaging in chat rooms, forums and linking to other websites. Companies may attempt to validate your participation in chat rooms, forums and linking to other websites through their annual Employee Certification of Compliance and U-4 Attestation which is usually done monthly. This simply means that the Financial Services Professional must attest annually and may have to report monthly that they are in fact complying with the company’s Code of Conduct and Guide to Electronic Communications.
For your reference, please note that the content standards of Rule 2210(d) and related IM-2210-1 apply to public appearances, including chat room participation.
For more information, please go to the Guide to the Internet for Registered Representatives at
www.finra.org
Forums: Rules and No! Nos!Financial Services Professionals need to be keenly aware of the rules and restrictions when using the Internet. While on company computers, their personal computer or PDAs. Are you aware of your company’s policy concerning Internet or Online Forums?
Electronic Chat Rooms
Chat room participation by RRs (Registered Representatives) is considered a public appearance and subject to the same guidelines. Therefore, RRs must follow the same requirements for participating in a chat room that they would if they were speaking in person before a group of investors. There are no filing requirements, but RRs are accountable under NASD Conduct Rules and the federal securities laws for what they say regarding securities or services. Also, member firms are responsible for supervising the business-related activities of RRs including chat room participation. Remember, these rules apply regardless of whether an RR is in the office or at home.
Because chat rooms contain live, unprepared communications, RRs are not required to get their comments approved in advance, unless their firm requires them to do so. In addition, chat room communications are not subject to the filing requirements of NASD Conduct Rule 2210(c). However, the content standards under Rule 2210(d) and IM-2210-1 do apply. RRs must check their firm's policy to see if they are allowed to participate in investment-related chat rooms and to seek permission from their firms to participate prior to doing so.
The fact that an individual is registered subjects him/her to a higher standard than members of the general public. Given the fast-paced environment of chat rooms, casual or off-handed statements have the potential of crossing the line between being a reasonable opinion and an exaggerated or unwarranted claim. Because of the difficulties of supervision and the potential liabilities from participating in chat rooms, many firms limit or prohibit participation altogether.For your reference, please note that the content standards of Rule 2210(d) and related IM-2210-1 apply to public appearances, including chat room participation.
Our Advice To You: Do not use chat rooms or forums (including these) to discuss client or potential clients financial or investment information. This is serious advice folks! No exceptions allowed. You must register to access the Forums at AuburnMountain. We following this registration policy for several reasons. 1. It minimizes junk conversations and enhances our ability to insure quality discussions on issues that affect Financial Services Professionals. 2. It helps minimize companies concerns that their employees and representatives are participating in unregulated and non-compliant discussion forums with exposure to product advertisement and websites that have not been approved.
Providing Links To Other Websites While On Chat rooms or Forums
At the
Financial Industry Regulatory Authority –FINRA website, you will find the following information concerning linking to other websites. Linking to other sites raises concerns because these sites may contain misleading or incorrect information. An RR's Web site should not have a link to a site that he/she knows or has reason to know contains false or misleading information about products or services. RRs should exercise the same care in choosing links as they would in referring customers to any outside source of information. For more information...Go To
Financial Industry Regulatory Authority –FINRA
Validating Activities In Chat Rooms, Forums and Linking to Other Websites
Your company(ies)’ Code of Conduct and Guide to Electronic Communications may prohibited you from engaging in the use of chat rooms, forums and linking to other websites. Companies may attempt to validate your participation in chat rooms, forums and linking to other websites through their Annual Employee Certification of Compliance and U-4 Attestation…monthly
The Financial Services Professional must attest annually and may have to report monthly that they are in fact complying with the company’s Code of Conduct and Guide to Electronic Communications. For more information, please go to the Guide to the Internet for Registered Representatives at
www.finra.org Also we strongly encourage you to check with your company(ies) compliance polices and review all materials on the use of Chat Rooms, Forums and Linking to Other Websites.