In yet another indication that compliance walls to social media usage on the part of advisors are coming down, electronic compliance and archiving firm Erado announced Tuesday that it signed a multi-year agreement to provide social media compliance services to Investacorp Inc., an independent broker-dealer subsidiary of Ladenburg Thalmann Financial Services Inc.
With the implementation of Erado’s social media services, Investacorp will allow its advisors access to interactive social network sites such as LinkedIn, Facebook and Twitter and to communicate with clients and engage in business development programs.
“We’re looking forward to working with Investacorp as our newest exclusive social media compliance customer,” Craig Brauff, CEO of Erado, said in a statement. “We are just now starting to see the financial services industry begin to use social networking sites. Once you decide to move into social media, you need to get compliance involved, and compliance concerns are real.”