The Mutual Fund Dealers Association of Canada (MFDA) says that, while most firms don’t allow their employees to use social media, it is developing guidance for those that do.
In its Guidance on Social Media issued Monday, the MFDA indicates that back in the spring it sent out a questionnaire to its members requesting information on various aspects of their businesses, including whether they allow the use of social media for business purposes. It found that the majority of firms do not permit the use of social media; and, as a result, they do not have policies for its usage.
However, it notes that many dealers do allow the use of social media and have established related policies for it. MFDA staff has reviewed those policies, and is now drafting new social media related guidance. It says this guidance will include suggested best practices to help firms develop compliant policies for social media use.
Additionally, the MFDA suggests that firms that do not permit their reps to use social media should also have policies specifically addressing their position, and ensuring that this stance is appropriately communicated to reps.