NEW YORK - Wall Street applications banks to subscribe the shares for companies from social media such as LinkedIn and Twitter, but online networking sites are in large part to financial advisors and banks.
Now, the largest brokerage of retail U.S., Morgan Stanley Smith Barney, is expected to be the first coach of wealth for its brokers to use Twitter.
Next month, a group of 600 Morgan Stanley Smith Barney test consultants can almost full use of LinkedIn, the professional networking site and a restricted use of Twitter, the micro-blogging service, according to an internal memo obtained by Reuters Wednesday.
In the six months, the program will be expanded through the undertaking of 17 800 advisors.
"The emergence of social media has changed the way in which people communicate between them and businesses interact with customers," Morgan Stanley Smith Barney U.S. wealth management boss Andy Saperstein, said the memo.
Communications by brokers, clients or the wider public, is closely monitored by regulators protect against investment scams, false advertising and misleading advice. Outmoded media such as recordings of telephone calls and e-mails are stored, archived and projected.
Still of brokerage grew anxious, as hundreds of millions of people, including their customers, adopted Twitter, LinkedIn and Facebook as their best way to communicate with friends and get information.
Last year the financial industry regulatory authority has established rules for the use of limited social media, but Wall Street has been slow to allow brokers to participate.
To comply with these rules, Morgan Stanley Smith Barney will install technology to capture and retain all communications on social networking sites approved, in accordance with the memorandum.
The test of Advisors Group includes Morgan Stanley Smith Barney elite "Club President" brokers and advisors about 100 who have tested the use of LinkedIn. The retail brokerage is a joint venture between Morgan Stanley and Citigroup Inc..
Morgan Stanley does not have the full use of social media. The true nature of social networks — leaving users link to other Web sites, messages of propagation and images - was very popular but a source of anguish for compliance of brokerage officials.
A spokesman for Morgan Stanley said advisers will be allowed to use the interactive features of LinkedIn, but will "recommend" themselves or other financial advisors. They can also be recommended by others because of regulatory restrictions on the use of the evidence.
Dealers will be allowed to distribute of search and content, such as updates of status and tweets, but once again only to those approved in advance by the company as official prospects society views of market or special eventssaid the spokesman.
Other managers of resources, including Bank of America Corp. Merrill Lynch, Wells Fargo advisors and UBS Wealth Management Americas, were wading in the waters of social media.
These rivals leave advisers maintain LinkedIn profiles with contact information and biographies, but they do not allow to construct links to other profiles. LinkedIn was 102 million members at the end of March, mainly professionals who create pages of profile with a photo and information career.
"Social media were mainly viewed with trepidation by brokerage because of strict adherence to the FINRA guidelines, but social media can be an asset for existing customers and an essential means to reach potential customers"said Stacey Haefele, Chief Executive of the marketing HNW farm.
Brokerage executives were looking to integrate these new media as a means for the ageing of the ranks of the advisors to communicate and to attract a new generation of customers and prospects.
FINRA in January 2010 notified of brokerage houses to process the information on the sites of social media as "a commercial documentation", meaning tweets, posts and other data must be captured and retained for at least three years. Static information, such as profiles and blogs, must be approved in advance, said FINRA.
Morgan Stanley, Bank of America, Merrill Lynch and JPMorgan Chase & Co, were the insurers of the initial public offer of LinkedIn Corp. blockbuster lead last week.
(Reported by Joseph a. Giannone; additional reports by Helen Kearney; editing by John Wallace)
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