5 Banking Regulations Affecting Social Media Compliance
Beginning with the obvious hurdles of FDIC and NCUA advertising requirements, there are many compliance concerns to keep in mind when contemplating a social media initiative at your financial institution. If you *ever* plan to post an advertisement on a social media platform, you’d be wise to add the proper advertising statement and/or symbol on your social media profile page. Advertising messages are defined as a message, appearing in any medium, that is designed to attract public attention or patronage to a product or business.
Here are five more regulations that affect banking compliance when social media is used by the financial institution.
- Reg B all records related to a loan application be maintained for 25 months (ie: complaints or comments regarding the loan must be retained)
- Reg BB all CRA-related comments received must be kept in the institution’s CRA public file.
- Reg DD (Truth–In-Savings Act) applies for any commercial message in any medium that promotes, directly or indirectly, deposit accounts. If a communication of this type is sent, a record of the message must be retained for 2 years.
- GLBA (Gramm Leach Bliley Act) requires security of customer information, insurance disclosures should appear if the bank mentions insurance products in its posts or on its pages.
- Reg Z (Truth-In-Lending Act) applies for any commercial message in any medium that promotes, directly or indirectly, a credit transaction. If a communication of this type is sent, a record of the message must be retained for 2 years.
This is obviously just the tip of the iceberg when it comes to concerns that financial institutions might have when starting any social media initiative. What’s your most pressing compliance concern regarding social media? Please leave your comments below or in Control’s Social Media Best Practices forum (exclusively for community bank and credit union folks, the vendors that serve them and financial industry regulators).
Free Banking Policies: Social Media, Internet Acceptable Use
Continuity Control has a dozens of free banking policies and checklists available to our members. Of particular interest to readers of this blog post might be several internet acceptable use policies that cover social media as well as a policy specific to social media. Control’s Community provides a collaborative forum for banks, credit unions and industry vendors to work together cooperatively to tackle the complexities of compliance.
Free Webinar: Social Media ABCs from Reg B to Reg Z – July 27, 2010 1pm – 2pm EDT
Failing to figure out the regulatory issues is what’s holding over 75% of banks and credit unions back from using social media. With concerns ranging from Regs B – Z to reputational risk, it’s only a matter of time before financial regulators turn their focus to addressing social media. The time to prepare is now! – This webinar will discuss the proper steps to ensure sound social media compliance. Hear directly from bank and credit union executives as they share lessons learned during their own institution’s social media implementation. Learn more and Register for this Webinar today!
Comments
One Response to “5 Banking Regulations Affecting Social Media Compliance”
Leave a Reply
[...] This post was mentioned on Twitter by Sonya J Mills, Continuity Control. Continuity Control said: 5 Banking Regulations Affecting Social Media Compliance http://ow.ly/2gGau [...]