When many financial advisers ask their firms about fully engaging in social media, the answer is usually still a resolute “no” – to Twitter, Facebook, LinkedIn, Tumblr, Pinterest, blogging and just about anything else.
Only a few of the major financial firms, including Morgan Stanley Wealth Management, have started pilot programs to give their financial advisers access to social media, because each interaction has to be monitored by a compliance system to make sure advisers are abiding by regulations.
Advisers themselves aren’t convinced that there’s enough value for their practices in using social media. Only 19 percent of the 463 financial advisers surveyed by Aite Group, a research firm based in Boston, said they found social media to be useful to their businesses. LinkedIn use was up 10 percent since 2009, but professional use of Facebook and Twitter dropped 10 percent and 8 percent, respectively, and blogging was down 9 percent, according to the Aite study.