More On Legal & Compliancefrom The Advisor's Professional Library
- Dealings With Qualified Clients and Accredited Investors Depending upon an RIAs business model and investment strategies, it may be important to identify “qualified clients” and “accredited investors.” The Dodd-Frank Act authorized the SEC to change which clients are defined by those terms.
- Client Communication and Miscommunication RIA policies and procedures must specify what type of communications should be retained. The safest course of action is for RIAs to retain all communicationsto clients, from clients, and about client accounts. To comply with fiduciary obligations, communications must be thorough and not mislead.
H.D. Vest Financial Services announced Thursday that after conducting a year of social media platform research, it has selected Socialware as its platform of choice for its independent network of 4,600 financial planners.
Socialware allows advisors to communicate with clients through social media in a secure and compliant manner. Headquartered in Austin, Texas, Socialware currently works with 160 businesses and specializes in providing them with secure and compliant software and services that allow them to market themselves with customers and prospects on Facebook, LinkedIn and Twitter.
Irving, Texas-based H.D. Vest will launch a pilot program on April 16 with 50 advisors. At its annual national conference in Miami on June 18 through 21, the firm will then offer all of its 4,600 advisors the chance to sign up for the social media program. Advisors who participate will use Socialware to identify business opportunities through their Facebook, LinkedIn and Twitter networks.
H.D. Vest President and CEO Roger Ochs said his firm will rely on Socialware’s experience in working with financial professionals who have to navigate complex regulatory responsibilities when using social media.
“We are very excited about our partnership with Socialware. As more and more Americans are utilizing social media in their daily lives, we believe this is an excellent opportunity for our advisors to stay in contact with clients and really understand what’s important in their lives,” Ochs said in a statement.
Founded in 1983, H.D. Vest Financial Services supports an independent network of tax and non-tax professionals who provide financial planning services that include securities, insurance, money management and banking solutions. The firm manages more than $30 billion in assets for 1.8 million individuals, families and small businesses in all 50 states.
H.D. Vest advisor Joe Bonfiglio of Holmdel, N.J., says he looks forward to using social media to connect with clients.
“I believe this medium has tremendous potential to keep me actively engaged with my clients,” Bonfiglio said in a statement. “Research has shown that engaged clients are both more loyal and more likely to refer new clients to their financial advisor. I am looking forward to using social media to help further strengthen my client relationships and grow my business.”
Read Advisors Flocking to Social Media, but Still Misunderstanding Clients at AdvisorOne.