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National Planning Holdings, Inc. (NPH) announced Tuesday that it will work with Erado on compliance for social networking, with rollout of the new capabilities expected in the fall.
Once completed, NPH said its representatives would be able to use LinkedIn, Facebook and Twitter for client communications and business development programs.
Each of the four broker-dealers in the NPH network, INVEST Financial Corp., Investment Centers of America, National Planning Corp. and SII Investments, will be covered by the agreement with Erado. The new technology will assist NPH in monitoring, tracking and archiving social media activity on the part of its representatives to ensure compliance.
Jim Livingston, president and CEO of NPH, said in a statement, “Clearly, social media has reached critical mass and is becoming an increasingly important communication tool for financial advisers. However, managing the compliance implications of social media activity has been a challenge, and our relationship with Erado will help us address these issues head-on.”
Craig Brauff, Erado’s chief executive officer, commented on the importance of compliance as social media becomes ever more important. Brauff, in a statement, said, “The financial services industry is increasingly recognizing the power of social media, and the effect it can have on marketing and communications efforts. With that said, compliance regulations continue to evolve and companies in the sector must ensure that they are properly monitoring and archiving their social media activity. That’s where Erado can help...”