Federal Financial Institutions Examination Council Releases Social Media GuidelinesAdded by Hawley Troxell in Articles & Publications, Banking Law on January 23, 2014
The principal federal banking regulators in the United States recently finalized social media guidelines for US financial institutions.
The guidelines identify compliance, operational, and reputational risks arising from depository institutions’ use of social media, defined as “a form of interactive online communication in which users can generate and share content through text, images, audio, and/or video.” According to the issuing agencies, the guidelines apply existing regulatory requirements and supervisory guidance to the new field of social media. Accordingly, the guidelines reference existing statutes and regulations, such as the Truth in Savings Act and the Gramm-Leach Bliley Act and the related regulations, and do not create new regulatory requirements.
The purpose is to apprise financial institution directors and officers of their responsibilities to oversee and manage social-media risks. The key takeaway is that regulators are looking to the board and senior management to (i) develop policies and assign responsibilities for social media use, (ii) establish controls for social media, and (iii) oversee the operation of these controls.
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