Social Media in Investment Management

Social media has moved from the fringes of techno geek culture to the mainstream with astonishing speed. The terms “social media” (or “social networking” or “Web 2.0”) is a catch-all for a variety of digital services, usually free to users and carrying advertising. Technology has always outpaced regulation and social media is no exception. Regulators in the US and Europe have so far issued only general regulatory guidance and many firms are skeptical about what steps they should take – if any – to start their foray into social media. This paper gives firms a look at the four main social media outlets; provides tips in navigating these websites; and lays out a best practices framework for developing a comprehensive social media policy.