Dangers of Social Media Influencers | Thayne Gould Reacts
VIGILANT INSIGHTS
Introduction
As the Marketing Rule continues to be a major topic for enforcement in 2024, it would be prudent for Firms to have awareness of the compliance requirements that surround this form of advertisement.
At the end of the 1st quarter, FINRA announced its first fine related to social media influencers.
With all the attention being paid to the Marketing Rule, Vigilant Director, Thayne Gould, provided his insights on Ignites.
Thayne Gould Insights
The article discusses the rising investments in social media influencers by large Firms. Many reported that they see promoters as a worthy investment in comparison to traditional methods.
Thayne discusses how this relatively new tool will become more prevalent. The larger Firms with the resources to properly utilize big influencers will see the first growth; eventually the smaller Firms will also get involved.
Considering recent enforcements, Thayne suggests Firms take specific steps to ensure their compliance departments are prepared to handle the complexities that arise in this space. The effort required may be quite sizeable, considering the collaboration needed between sales, marketing, and compliance.
Vigilant’s Conclusion
It is important that your compliance department is prepared for the anticipated increase in enforcement related to the Marketing Rule.
Utilizing an experienced advertising and marketing review team is important for one’s success in such an intense regulatory climate.
If you would like learn more regarding how to navigate the compliance complexities involved with new marketing strategies, reach out to us today.