Home      Login

Abstract: 

Social media have profoundly affected the way companies now do business in many positive ways. However, the use of social media poses significant risks for regulated financial institutions. To address potential compliance challenges, the Federal Financial Institutions Examination Council issued final supervisory guidance describing the regulators’ expectations with regard to social media. This article discusses the guidance, highlights existing legal requirements—and the related supervisory expectations—that apply to social media activities, and illustrates various areas of risk that financial institutions should consider with respect to their use of social media.

Keywords: Federal Financial Institutions Examination Council; FFIEC; social media; compliance; risk management; advertising communications

Affiliations:  1: Pepper Hamilton LLP; 2: Pepper Hamilton LLP.