Social media use among registered investment advisors shot up over the past year, with 80% of RIAs stating they have adopted formal written policies concerning social networking, up from 64% in 2011 and 43% in 2010, according to the seventh annual Investment Management Compliance Testing Survey, released Tuesday.
The survey, conducted by the Investment Adviser Association (IAA), ACA Compliance Group and Old Mutual Asset Management, found social media to be the “hottest” compliance topic, with 54% of firms prohibiting the use of personal social media sites for business purposes, and 52% reporting that their social media testing has increased since 2010.
The second most commonly cited hot compliance topic by RIAs was insider trading, with 74% of firms testing to detect insider trading. More than 30% have increased their testing since last year.
The online survey was conducted from April 23 to May 18 and collected responses from 555 compliance professionals, representing a range of SEC-registered advisors.