The U.S. Financial Industry Regulatory Authority has issued guidance to securities firms and brokers regarding the use of social networking websites, in an effort to clarify firms’ responsibilities for supervising such communications.

Published Monday, the guidance explains firms’ supervisory responsibilities in the use of sites, such as Facebook, Twitter, LinkedIn and blogs, to communicate with the public. It emphasizes that firms must develop policies and procedures designed to ensure that the company and its personnel are complying with all applicable regulatory requirements when using social networking sites.

The notice also deals with the recordkeeping obligations of firms, noting that some technology providers are developing systems that are intended to enable firms to retain records of communications made through social networking sites. “FINRA does not endorse any particular technology to keep such records, nor are we certain that adequate technology currently exists,” it says.

“Social networking sites and blogs raise new regulatory challenges, particularly in the areas of supervision, advertising and books and records requirements,” said FINRA chairman and CEO, Rick Ketchum. “Our goal in issuing this notice is to ensure that firms and brokers use social networking sites in an appropriate manner.”

IE