Preparing for social media guidelines.

• Author: Hershberger, Tara
• Position: SOCIAL MEDIA - Federal Financial Institutions Examination Council

SINCE THE LAUNCH OF OUR FIRST BANK FACEBOOK PAGE SIX YEARS AGO, we've wondered when the social media regulations would start. With the introduction of a new set of proposed guidelines by the Federal Financial Institutions Examination Council (FFEIC) this year, that first step has been taken.

The draft guidelines have drawn fire from numerous banks and industry groups. Critics question the necessity of having a separate set of guidelines for social media since the guidelines themselves reference practically every other guideline enacted. There are complaints about the lack of guidance relative to monitoring and about the undue burden placed on banks to monitor the entirety of the Internet.

Beyond that, commentators point out that in other channels, financial institutions determine what a complaint is and respond according to their policies, procedures and reasonable interpretation of the regulations. They question why social media is uniquely different.

Banks of all sizes would be wise to understand the guidelines as proposed in order to prepare for any changes that may be necessary.

There are numerous mentions within the guidelines of treating social media as you would any other product channel. Following the one-click-away rule is a good example. Just as if you were running an online ad, disclosures (clear and conspicuous, of course) need to be one click away from the post. As with other channels, there needs to be audit and compliance functions built into the process. The expectation is that the size, structure, risks and complexity of your financial institution will match the sophistication of your controls.

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It's important to note that, as proposed, no one is exempt from these guidelines. Even if your bank chooses not to initiate a social presence, you are still obligated to monitor what is being said about your organization and put policies and procedures in place to respond to negative consequences. In addition, regardless of participation, you need to have employee policies and guidelines. Most employees will want to know what they can and cannot do on social media as it relates to their employer. Employee training on...