Lana Burkhardt

SEC Issues Statement Regarding Social Media Usage Within The Wealth Management Industry

2012-01-12T10:38:00.000-08:00

http://www.sec.gov/about/offices/ocie/riskalert-socialmedia.pdf

The SEC has issued an updated statement that is serving to provide additional guidance to Financial Advisers using Social Media in their practice. Click on the llink above for the full SEC update. We expect to see more clairification to the guidelines this year as more and more wealth management firms move activities online.

According to the SEC update: "Investment advisers that use or permit the use of social media by their representatives, solicitors and/or third parties should consider periodically evaluating the effectiveness of their compliance program as it relates to social media. Factors that might be considered include usage guidelines, content standards, sufficient monitoring, approval of content, training, etc. Particular attention should be paid to third party content (if permitted) and recordkeeping responsibilities."

Prior to starting any actitivities online it is critical to prepare a detailed Social Media Policy and provide proper training and guidelines to all Advisers using the tools online.

FINRA Has Updated Position on Social Media Practices for Financial Advisers

2012-01-12T10:27:00.000-08:00

The link below provides Financial Advisors with the most recent comments regarding FINRA guidelines for Social Media practices.

http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20111230/FREE/111239990/-1/INDaily01&dailycount=1&issuedate=20111230

Risk Management As a Brand Strategy for Wealth Advisors

2011-12-21T07:37:00.000-08:00

During the recent financial crisis high net worth clients have become more aware of the risks involved in working with a variety of Investment Advisors. As a result, wealth management firms have turned a renewed focus to improving risk management and in doing so minimizing constraints on the business. Firms have taken steps toward improving liquidity, operational, investment management provider risks and imbedded safeguards into their overall business strategy.

A recent survey * by Pricewaterhouse Coopers stated that 62% of its wealth firms surveyed reported that their risk management frameworks have been in place for less than five years. And, although firms have placed it high on their near term importance list, they have not adequately taken steps to communicate these safeguards to their clients and prospects.

In selecting new advisors today, risk management is a significant concern for most high net worth individuals. Firms, who have taken steps to mitigate and manage risk, should be incorporating it into their brand message at every turn. New business presentations, marketing materials, websites, newsletters an d other communication forms should be emphasizing the proactive steps taken by the firm to protect clients from the variety of a industry abuses they have witnessed within the past few years. A competitive advantage for a wealth management firm is no longer based on performance and price, but a renewed emphasis on safety, risk management, organizational transparency and integrity in relationships. In order to compete in this new market, firms will need to reposition themselves as to how they fulfill those new priorities of the high net worth investor.
* Pricewaterhouse Coopers Global Private Banking and Wealth Management Survey 2009

Wealth Management In a Digital World

2011-11-22T11:10:00.000-08:00

Today's wealth management landscape is rapidly being leveraged by the power of the Internet. Those professionals who fail to adapt to the digital choices available to communicate with new prospects will find that they are at a competitive disadvantage in the new business cycle. By cultivating an online presence that begins to showcase both the knowledge and talent within your organization you are taking the first step in becoming a thought leader within your target audience group.

Recent studies have shown that an increased number of large wirehouse brokers are relying more on their personal brand rather than their company's brand to build and sustain new business. This phenomenon comes as a result of the tarnished brands of many of the major wealth management firms and the increased availability of new digital tools to support building an Advisor's personal brand.

Never has it been easier to begin the sales dialog long before the Advisor ever meets the prospect. The Internet has provided a relatively inexpensive channel for innovative Financial Advisors to build their own personal brand through Thought Leadership development. All while maintaining the umbrella brands of their organization.

The Internet allows Advisors to build a network of contacts to facilitate new business and referrals, identify under served niche markets, provide information that is relevant, timely and target audience specific The concept of personal branding and thought leadership are not new. In fact they essentially go back to the basics of creating value through personal engagement with your target audience in a way that is important to your prospect. In the past, we relied solely on in-person and telephone contact. In today's digital world, we have access to a full cadre of useful tools to enhance the process of building client relationships and driving revenue.

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