Tag Archives: Social Media

G-Day is January 20! Don’t be left out.

Friday January 20th is “G-Day” where you can discover the value (or lack thereof) of Google’s social network, Google+

Social networks have propelled themselves into modern culture, so much so that our lexicon doesn’t bat an eye at words like “tweeting,” “liking,” or “linking-in” anymore.

Abundant, and trivial, information of all kinds is being shared across these networks on a second-by-second basis. They can be a great source of information if you can successfully separate the signal from the noise, but the big three networks are not without their drawbacks.

Facebook, the world’s biggest social network with over 800 million users, wins the ubiquity title because of its critical mass of users. Practically everyone is on Facebook.

But one of Facebook’s drawbacks is the fact that that everybody on the service is your “friend,” whether you’re related by blood or had a chance meeting at a networking event two years ago. It makes little difference to Facebook. You’re connected, so you’ll see updates from plenty of people, and chances are, most updates are not too relevant to your network of actual, real-life friends (though you can group Facebook friends if you can find the lists feature buried in a stockpile of menu items).

Twitter certainly has a healthy stream of information shared by users, but its 140 character limit on posts truncates any real discussion on all-but-the lightest topics. Well-constructed replies often span several tweets, and pretty soon, your stream of well-intended thoughts can be viewed as a diatribe from a spammer filling up a tweet stream.

And LinkedIn. Other than a virtual resume site for professionals, are users doing any real sharing or collaboration on the site? LinkedIn Groups are a mixed bag, as just when the good groups foster useful information, spammers take over and blast their tomes, crowding out the original participants.

Enter Google Plus (Google+, or simply G+). Google’s latest attempt at a social network and sharing service started out slow, with invitations shared only among a select few early-adopters, but now the service is open to anyone.

Google+ attempts to offer alternatives to the limitations outlined above: profile updates can be any length, most often include embedded photos or video, and connections with others can easily be sorted into circles.

Despite its clever interface, Google+ largely lacks the key ingredient to a successful social service: active and diverse users.

So leave it up to Mike Barad. Barad is the Sr. Vice President and business manager for Morningstar’s Financial Communications Business. After a discussion with several advisers sporadically using Google+, he encouraged everyone to abandon all social networking platforms for one day and focus exclusively on Google+.

Here is Barad’s post on Google+: https://plus.google.com/101852363593249198257/posts/e35VNqaJZoy

So this Friday, January 20, get on Google+ and join the conversation. If you’re setting Google+ up for the first time, add advisers who commented on Barad’s post to your circles to get started.

FPPad Bits and Bytes for January 6

Happy New Year! I’m on the road already, traveling to Atlanta and Omaha over the next week, followed by Las Vegas for the AICPA Advanced PFP conference. Here are this week’s stories of interest:

The Largest RIAs Race to Scale from Financial-Planning.com

[So you want to be a $1 billion firm: what do you need to do to get there? Hire great talent, differentiate yourself from your competition, and scale your technology. Easier said than done, based on feedback from some of the largest RIAs in the industry gathered by FP’s Ann Marsh.] Over the past 30 years, the fee-based RIA space has grown by leaps and bounds, from zero to close to $2 trillion in cumulative assets under management. That number is still dwarfed by the $9.3 trillion that research firm Cerulli & Associates estimates is in the hands of full-service brokerages, insurers, trust companies and banks. But the figures look poised to eventually flip as RIAs work to address their top challenges: boosting their efficiency, customizing their technology and differentiating themselves from the competition.

LPL makes big advance into the RIA business with Fortigent acquisition from RIABiz.com

[Why should RIAs cater to high-net-worth individuals? Well, that’s where the money (e.g. revenue) is. Let us hope that after LPL’s acquisition of Fortigent, the company can truly apply its newly-acquired service model ‘down market’ in the words of Brooke Southall.] After a month of rumblings, LPL Financial made official its intent to acquire Fortigent, LLC, a top outsourcer of high-net-worth solutions and consulting services to RIAs, banks and trust companies.

Who’s Afraid of Social Media? from Financial-Planning.com

[Look, satisfying compliance requirements when using social media does not require a degree in rocket science. Yes, regulatory requirements might be ambiguous, but by applying common sense principles and some clever uses of technology (e.g. automated archiving services), advisers can successfully engage in this new dialogue without fearing the regulatory hammer.] Social media compliance is a subject that elicits a range of reactions from planners, from groans to cautious, curious questions. But Leia Farmer, the deputy chief compliance officer at Securities America, is excited about it.

FPPad Bits and Bytes for December 30

Happy New Year!

Here is this week’s story of interest:

Early adopters of social media, RIAs are growing disenchanted with its power to drum up new business from RIABiz.com

[I said it on Twitter and I’ll repeat it here: advisers looking for a quick score on social media should look elsewhere. Social media is an extension of brand awareness and relationship building that firms have been doing for decades.] Registered investment advisors have embraced the world of social media earlier and with more zeal than their competitors in the last couple of years. But as a result, they are more quickly discovering its limitations.

Is this the right way for advisers to use social media?

There isn’t one “right” way to use social media. Opinions cover a wide spectrum on how advisers can best use social media to market their practice, create their brand, and listen to conversations by clients and colleagues.

But there certainly are some uninspiring ways to use these new communication channels. I submit to you Exhibit A:

(And what’s up with the Socialware app? When you look at individual tweets on the web, they’re white text on white background. QA fail!)

FPPad Bits and Bytes for November 11

I’ve been back in Dallas for a week, but I still have yet to review and edit my notes from Schwab IMPACT 2011. Soon I hope to have two or three new updates on my feedback from conference breakout sessions, but consulting, new content development, and family obligations take precedence. Still, I’ve kept my pulse on the wires this week for the best in technology stories for financial advisers.

First, if you have a website, but are wondering what you can do to take it to the next level and convert visitors to clients, read this month’s column on Morningstar Advisor, How Marketing Automation Can Accelerate Client Growth.

All the major media outlets were on site at Schwab IMPACT 2011, so there were a number of stories released this week regarding related announcements. Most of them were good, but in this case, video content did a better job of addressing what the custodian is doing with its technology platform for advisers than print.

Here are two video updates from Schwab IMPACT worth viewing, one from InvestmentNews’s Davis Janowski interviewing Neesha Hathi and a second from James J. Green’s AdvisorOne, also interviewing Neesha Hathi.

Advisor Tested: Arkovi expands and archives a firm’s online footprint from RIABiz.com

[As an adviser in a regulated industry, you can’t tweet, post to Facebook, or interact on LinkedIn if it’s related to your business unless you archive and supervise your records. One tool that facilitates your compliance obligations is Arkovi, and Judy Messina gives a good rundown in this RIABiz Advisor Tested story.] As registered investment advisors flock to Twitter, Facebook and other social-media sites to establish themselves as thought leaders and connect with customers and other investment professionals, storing and keeping track of tweets, posts and other content for compliance purposes can seem like an exercise in herding cats.

And in related news, I think you might care a little bit about what might happen with the future of regulatory examinations for investment advisers.

Let RIAs Foot Their Own Examination Bill, Report Says from FA-Mag.com

[In a report commissioned by TD Ameritrade Institutional, Georgetown University finance professor James J. Angel proposed that RIAs should pay for their own periodic compliance examinations conducted by an outside third party. There’s merit to this idea, as RIAs who take custody of client assets today must subject themselves to (and pay for) a surprise audit by an independent public accountant that is registered with the Public Company Accounting Oversight Board (PCAOB).] Instead of the Securities And Exchange Commission (SEC) or the Financial Industry Regulatory Authority (Finra) examining RIA firms, the firms themselves should foot the bill for their own periodic compliance examination by using an outside body.

 

FPPad Bits and Bytes for August 26

Again, I found myself fully engaged in content creation and research this week. I completed my Morningstar Advisor column for September and added new content to my Transformative Technology slide deck for a presentation in September. Next week I’ll be attending the Gemini + Orion Advisor Forum in Denver, CO, immediately followed by a week of vacation to escape this brutal heat in Dallas.

Here are this week’s stories of interest:

There are multiple stories on Schwab Advisor Service’s Intelligent Integration initiative to kick off this week.

My take: Schwab’s Intelligent Integration is finally producing results. But will Schwab’s approach on limiting its integrations prove to be a prudent move or a platform-limiting one? Think about Apple’s success with app developers: Would the iPhone and iPad be so successful today if Apple were the only developer of applications for the devices?

ByAllAccounts and Redtail Technology Offer Centralized Access to Clients’ Comprehensive Account Data from GlobeNewswire.com

ByAllAccounts, Inc., the financial advisor’s choice for account aggregation, and Redtail Technology, a leading provider of Client Relationship Management software, today announced a partnership that provides financial advisors easy access to a more comprehensive client snapshot.

Special Report: The technology products advisers use most from InvestmentNews.com

My take: There are a few articles here about adviser use of technology plus two updates of survey results listing the most popular technologies overall and by category. I’ll likely compare the InvestmentNews survey results with those of the 2010 Financial Planning Magazine Technology Survey.

A Look Inside LPL Financial’s Social Media Strategy from Financial-Planning.com

[If you’re the nation’s largest independent broker-dealer by assets, just how do you implement social media across thousands of reps?] At focus11, LPL Financial’s national conference held earlier this month, it was clear that social media was clearly more than just a casual “focus” for the 5,000-plus attendees.

FINRA Updates Guidance on Social Networking for Brokers

Today, FINRA released updated guidance on brokers’ use of social media sites, clarifying items surrounding recordkeeping, suitability, supervision and content requirements for such communications.

The latest guidance is Regulatory Notice 11-39 and can be viewed on FINRA’s website.

Click here to view the notice on FINRA.org.

My summary: This notice deals with “personal devices for business communications,” i.e. tweeting with a personal smart phone. To simplify, yes, brokers can use personal smart phones and tablets to post social media updates provided they are:

  • trained on what’s allowed and prohibited according to the firm’s policies and procedures
  • using devices that do not automatically delete content
  • adequately supervised (perhaps by random spot checks) by registered principals

Tweets Cost One Broker $10,000, One-Year Suspension

I caught this article from the New York Times (thank you Pat Allen at AdvisorTweets) detailing one broker who was penalized for sending a series of “misrepresentative and unbalanced” messages on Twitter.

Click here to read Tweets Land Broker in Trouble.

FINRA brought disciplinary action against Jenny Quyen Ta for several violations, including undisclosed outside business activities, undisclosed outside brokerage accounts, and of importance to this post, undisclosed tweets. For violating several rules, Ms. Ta was fined $10,000 and suspended from associating with any FINRA member firm for one year.

Despite just picking this story up today, FINRA actually brought the disciplinary action forward on November 23, 2010. So this information has been around for half a year, but we’re hearing of it only now.

Ms. Ta posted at least 372 tweets from her Twitter account from April to December 2009, 32 of which were about “overwhelmingly positive” mentions of imminent price increases in Advanced Micro Devices stock (NYSE: AMD). One example of Ta’s tweets:

Its going 2 b a good Xmas & 2010! Ck out AMD! Like I have said, it should b @ least a $10B co. which should b @ $ 15/shs. HappyTrading!

Most readers would agree that this type of tweet is a blatant violation of FINRA regulations.

So don’t think FINRA isn’t watching social media activity for questionable content. And if you’re interested in reading the full disciplinary action report, click here.

FPPad Bits and Bytes for June 17

Now that summer is here (where it won’t go below 75 degrees here in Dallas for another two months), the typical slowdown is upon us. I’m taking the opportunity to focus on several projects that I put off this spring and build up a library of topics for future blog posts and columns.

So is there something you’re dying to learn about in the financial adviser technology world? Perhaps a vendor tool or web-based productivity plugin? Contact me and let me know. I get my best content from advisers like you.

Now on to this week’s stories of interest:

An adviser dives into video stream from InvestmentNews.com

Davis Janowski had a hard time tracking down advisers using video and screen sharing software with clients and prospects. But when he identified one, he learned of the many ways this technology is helping one adviser grow his business.

What one big RIA has to say about its switch from Advent Axys to Advent Portfolio Exchange from RIABiz.com

How much better is APX over Axys, and it is good enough for a firm to want to stay on Advent’s platform? Read about one firm’s process of evaluating their options and APX conversion experience.

Think your millionaire clients aren’t e-media savvy? Think again from InvestmentNews.com

[Bill’s note: You shouldn’t be surprised by the results in Fidelity’s survey. The question is, what are you doing to deliver service to clients over their preferred media?] According to a Fidelity Investments survey released today, 85% of millionaires use or are willing to use electronic media, such as e-mail, social-media sites and text messaging, compared with only 43% of financial advisers and brokers.

SEI Quick Poll: 1 in 4 Top Financial Advisors Use Electronic Tablets for Client and Prospect Meetings from Marketwire.com

According to a survey of 150 top financial advisors at SEI’s National Strategic Advisor Conference in May, one in four respondents indicated they currently use electronic tablets for client and prospect meetings. Additionally, nearly half (46 percent) of advisors are thinking about using electronic tablets for work.

Securities America Jumps on the Social Media Bandwagon from RegisteredRep.com

[Socialware will be Securities America’s compliance technology solution] During its National Conference in Orlando, Fla., this week, independent broker/dealer Securities America announced its new social media program, which will allow all of its 1,800 reps to access and post content on Facebook, LinkedIn and Twitter in mid-July, said Leia Farmer, deputy chief compliance officer.

 

FPPad Bits and Bytes for May 27

This week’s Bits and Bytes is a big one! There are a few stories carried over from the previous week, as updating this page when traveling exclusively with an iPad is not the easiest thing to do, but a lot of great stories entered the wires this week, too.

And a reminder, Bill will be attending FPA NorCal next week in San Francisco, presenting Cultivating Clients in a Connected World on Wednesday afternoon. If you’ll be there, stop by and introduce yourself!

Here are this week’s stories of interest:

Choosing Software That Works for Your Advisory Firm—Part 6: Ensuring New Technology Meets Your Business Goals from AdvisorOne.com

The sixth update in a series by Spenser Segal of ActiFi designed to present best practices to advisors on how to choose, implement and monitor new technology for an advisory firm.

Compliance and Connectivity from Financial-Planning.com

Well, well, it seems that Bill’s presentation Cultivating Clients in a Connected World has persuaded Bob Veres to consider adopting social media for purposes other than marketing and search engine optimization. See what he has to say about advisers considering this new communication medium (and follow @bobveres on Twitter).

Smarsh Report Identifies Electronic Communications Compliance Gaps at Smarsh.com

Smarsh, the email and social media archiving solution provider, released results from a survey of compliance professionals regarding the use of electronic communications including social media. In summary, it confirms what you already know: compliance professionals aren’t up to speed on supervising and archiving electronic communication, specifically social media.

Tweet on the Street from NYTimes.com

Morgan Stanley is ready to unleash its 17,800 brokers into popular social media service Twitter (their archive and monitoring solution is Socialware). But nothing they post will be unscripted. Good luck with that, we say.

IPS AdvisorPro® and Redtail Integrate Technology Systems from IPSAdvisorPro.com

IPS AdvisorPro® and Redtail Technology announced the availability of a new data integration between their industry leading technology platforms for financial advisors. The new integration will streamline the preparation of Investment Policy Statements (IPS) by automatically populating IPS AdvisorPro® fields with client information contained in Redtail’s CRM solution.

After tortoise-like beginnings, AssetBook is now on-the-hop in portfolio management software from RIABiz.com

One smaller but fast-emerging portfolio management software firm is AssetBook. Based in McHenry, Md., it has burst onto the portfolio management software scene thanks to a recent marketing push and now has 150 firms using its services.