Financial Conduct Authority (FCA) recognises the importance of managing social media in highly regulated industries such as finance and automotive
CrowdControlHQ has published five tips for managing compliance and social media risk in response to a recently issued paper on social media from the Financial Conduct Authority (FCA). Along with formal guidelines, the FCA March 2015 guidance on social media is designed to protect the consumer from being misled or making poor decisions, while protecting businesses from loss or closure. The initial FCA consultation was shared with an audience of over 27,000 via Twitter and Facebook. Taking feedback from industry experts it states the need for compliant content and a more holistic view of social media risk management.
CrowdControlHQ’s Social Media and Compliance Specialist, Greg Freeman has published advice to address updates covered in the new FCA guidelines. Among the key requirements listed is that all firms must have full records of social media interactions which could be considered ‘in the course of business’ including corporate social channels and personal accounts.
In his blog Freeman recommends that compliance teams should have an overview of all social media interactions and that automated monitoring should ensure no breach of compliance or damage to brand reputation. He advises workflows to ensure content approvals with the appropriate qualified personnel while meeting the required ‘two sets of eyes’ sign-off to manage customer complaints effectively. CrowdControlHQ also advocates that records of all social media interactions should be compiled across corporate and figurehead employee channels.
James Leavesley, CEO of CrowdControlHQ said, “We welcome the latest paper from the FCA which includes some key updates to the original guidelines covering the important areas of endorsement, record keeping and risk management. What is clear is that companies that operate in highly regulated industries, such as the finance and automotive sectors, can no longer rely on basic offshore social media tools to manage activity and risk, they must invest in a comprehensive UK social media management and compliance platform for social customer service.”
More on the FCA changes and CrowdControlHQ’s management tips can be found on our recent blog: FCA Recognises Social Media Compliance and Reputation Risk Management
Register for our forthcoming webinar on 14th May focused on understanding the impact of the FCA guidelines on your social media delivery, with presentations from Greg Freeman, CrowdControlHQ and Simon Ryan, Social Advisors.