More financial advisors are turning to social media as a means of communicating with their clients, and LinkedIn tops their list, according to a report about the investment advisor industry.
LinkedIn has remained the most popular platform among financial advisors since 2017, with over half saying they used it to connect with clients in 2021.
Advisors’ use of Twitter grew the most since 2017, with over five times more advisors saying they used it in 2021.
The findings are from the 2022 Industry Snapshot report by the Investment Adviser Association and the National Regulatory Services.
The IAA and NRS previously said advisors may have been reluctant to use social media in the past to attract clients because they risked making a misstep and violating the Securities and Exchange Commission’s advertising rule under the Investment Advisers Act of 1940. But the SEC amended that rule in December 2020 and those changes will take full effect, compliance-wise, on November 4.
The SEC’s new marketing rule, which allows testimonials and endorsements, covers electronic media — including social media and other internet communications — and mobile communications that “play a significant role in current advertising practices,” according to the SEC.
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