FINRA addressed questions about the application of Rule 2210 (Communications with the Public) to social media advertising, influencer arrangements, and interactive digital content by broker-dealers.
The guidance clarifies that influencer marketing arrangements, where firms compensate third parties to promote their services on social media, constitute retail communications subject to principal pre-approval and content standards.
Interactive content such as polls, live-stream Q&A sessions, and user-generated content are addressed, with FINRA noting that responses to customer questions may constitute recommendations subject to Reg BI requirements.
Firms are reminded that all social media content must be fair and balanced, must not contain exaggerated or misleading claims, and must be archived in accordance with books and records requirements under FINRA Rule 4511.