FINRA releases guidance on social media and digital communications

Purpose To summarize recent FINRA guidance on social media and digital communications published in Regulatory Notice 17-18. Design/methodology/approach The intention was to provide a brief summary of the recent FINRA guidance on social media and digital communications published in Regulatory Notice 17-18 along with previous guidance in Regulatory Notices 10-06 and 11-39. Findings The new guidance focuses on a number of areas of digital communications including text messaging, personal communications, hyperlinks and sharing, native advertising, testimonials and endorsements, correction of third-party content and BrokerCheck links. Practical implications Firms should review this new guidance alongside existing FINRA guidance and their current social media and digital communications practices. Where firms observe deficiencies in their existing practices, adjustments should be made before they find themselves the subject of a FINRA investigation, examination or enforcement action. Originality/value Practical explanation by experienced financial services lawyers.