Mar. 17, 2010

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This program addresses implementation of new guidance that FINRA recently issued in Regulatory Notice 10-06, concerning social media. FINRA staff and industry practitioners offer practical guidance on how to monitor and supervise social networking sites.

TIMED AGENDA

1:30 p.m. – 1:32 p.m. Introduction

Tom Pappas

1:32 p.m. – 1:42 p.m.  Summary of FINRA Regulatory Notice 10-06, Guidance on Blogs and Social Networking Web Sites

• Key topic areas include:
  - Recordkeeping responsibilities
  - Suitability responsibilities
  - Types of interactive electronic forums
  - Supervision of social media sites
  - Third-party posts

Tom Pappas, Doug Preston, Joanne Rodgers, Joseph Savage

1:42 p.m. – 1:56 p.m.  Firms’ Perspectives: Is Social Media Right for Your Firm? 

• Types of social media
• Business model (e.g., major wire house vs. independent broker-dealer)
• Customer expectations
• Growth opportunities / new business
• Competitive pressure
• Cost / benefit analysis
• Internal expectations

Tom Pappas, Doug Preston, Joanne Rodgers, Joseph Savage

1:56 p.m. – 2:08 p.m.  Firms’ Perspectives: Developing Social Media Pilot Programs

• Process behind conducting a pilot program
• Vendor due diligence
• Evaluation of pilot program
• Staffing implications

Tom Pappas, Doug Preston, Joanne Rodgers, Joseph Savage

2:08 p.m. – 2:22 p.m.  Firms’ Perspectives: Compliance Practices Concerning Social Media

• Types of Risk
• Training registered representatives on what they can / should do and cannot / should not do
• Recruiting practices vis-à-vis advertising rules
• Static vs. interactive content on “walls”

Tom Pappas, Doug Preston, Joanne Rodgers, Joseph Savage

2:22 p.m. – 2:28 p.m.  Third-Party Postings

• Monitoring and associated responses 
• Entanglement / Adoption
• Identifying customer complaints
• Setting of user rules

Tom Pappas, Doug Preston, Joanne Rodgers, Joseph Savage

2:28 p.m. – 2:35 p.m. Program Summary

FACULTY

Tom Pappas (Moderator) is Vice President and Director of FINRA’s Advertising Regulation Department. The department regulates the advertisements, sales literature and correspondence used by FINRA firms. His responsibilities include rule development, management of the filing and surveillance programs and related enforcement activities. He served in the same role at NASD before its 2007 consolidation with NYSE Member Regulation, which resulted in the formation of FINRA. He joined NASD in 1984 and was previously with Davenport & Company LLC. He received a bachelor’s degree from The University of Richmond and an M.B.A. from Virginia Commonwealth University.

Douglas Preston is a Senior Vice President and Compliance Executive at Bank of America Merrill Lynch (BAML), as well as Chief Compliance Officer for Merrill Lynch Professional Clearing Corporation, the firm’s prime brokerage arm. He is also responsible for a number of other compliance areas at the firm, including serving as the Chairman of the firm’s Enterprise Electronic Communications & Media Governance Committee, and leading BAML’s Global Banking & Markets Electronic Communications & Media Compliance team, among other responsibilities. Prior to BAML, Mr. Preston was Senior Special Counsel at NYSE Regulation. In his role at the NYSER, Mr. Preston helped develop and interpret various NYSE rules. He has worked on several major regulatory initiatives, including Regulation SHO, gifts and entertainment and electronic communications (NYSE 07-59), among others. Before joining NYSE, Mr. Preston was the General Counsel and Chief Compliance Officer (CCO) for Santander Investment, SA’s New York investment bank. He was also the CCO of the investment banking arm of the Bank of Nova Scotia, and Associate General Counsel for the Securities Industry Association (now SIFMA). Prior to SIFMA, he worked in private practice, representing financial services entities. Mr. Preston received his J.D. from Fordham University School of Law. He is a member of the Bar of New York, New Jersey, Washington, DC and the U.S. Supreme Court.

Joanne Rodgers is a Vice President of Compliance at New York Life Insurance Company (NYL).  She is responsible for managing the sales material review unit, field review unit and market surveillance. Ms. Rodgers has worked at NYL in various roles of compliance for the past 15 years. Prior to joining NYL, she worked as an examiner at NASD. She is a graduate of Franklin & Marshall College with a B.A. in Business Administration.

Joseph P. Savage is a Vice President in FINRA’s Investment Companies Regulation Department. Mr. Savage specializes in a broad range of securities regulatory matters, including investment management, investment company, advertising and broker-dealer issues, and regularly appears at conferences regarding these issues. Prior to joining FINRA, he was an Associate Counsel with the Investment Company Institute and an attorney with the law firms of Morrison & Foerster LLP and Hunton & Williams. Mr. Savage also served as a judicial law clerk for United States District Judge John P. Vukasin of the Northern District of California. Mr. Savage holds a bachelor’s degree from the University of Virginia, a master’s degree from the University of California, Berkeley, and a J.D. from the University of California, Hastings College of the Law, where he served as Note Editor of the Hastings Law Journal.