Microsoft-LinkedIn Partnership May Benefit Financial Advisers, but Compliance Uncertainties Persist

Now that Microsoft has acquired LinkedIn, it appears the deal may be of great value to financial advisers who progressively depend on LinkedIn to develop and sustain their client base.

Recent data demonstrates that LinkedIn is gaining popularity with financial services firms. The Smarsh 2016 Electronic Communications Compliance Survey Report revealed that firms are using LinkedIn more often for professional reasons. Out of the financial services compliance professionals who were surveyed, 72% said their firm used LinkedIn in 2015, compared to 39% in 2011. Also, survey respondents said that when employees request permission to use new communications channels for business, the most requested is LinkedIn, followed by text/SMS messaging and instant messaging.

However, it is alarming that the survey showed the use of LinkedIn still represents a compliance gap for firms, since many are behind in implementing archiving and supervision systems for the networking platform. Smarsh survey respondents indicated that when LinkedIn is allowed for business communications, only 54% of firms have an archiving/supervision solution in place.

At the same time, respondents named social media as the number one type of communications content perceived as the source of the greatest compliance risk. This points to the fact that firms use but don’t archive and supervise platforms, such as LinkedIn, and therefore leave themselves open to substantial compliance threats that may go unnoticed until it’s too late.

For more insight on the LinkedIn purchase by Microsoft, please check out this article, penned by Smarsh’s Mike Pagani, in Financial Planning Magazine.

Now in its sixth year, the survey identifies the trends, concerns and best practices of compliance professionals in financial services related to the retention and oversight of electronic communications. The report also highlights the compliance gaps that expose firms to risk.

You can learn more about compliance and electronic communications trends, challenges and solutions in the Smarsh 2016 Electronic Communications Compliance Survey Report.

Download the report now at http://www.smarsh.com/whitepapers/2016-electronic-communications-compliance-survey-report/.