23 May 2015

US rulemakers set sights on bank social media activities

23 January 2013  |  8308 views  |  0 keyboard 2

US supervisory agency the Federal Financial Institutions Examination Council (FFIEC) has issued proposed guidance on the application of consumer protection and compliance laws to bank social media programmes.

The FFIEC says that each financial institution should have a risk management programme that allows it to identify, measure, monitor, and control the risks related to social media.

It says increased risk can arise from poor due diligence, oversight, or control on the part of the financial institution and has laid down a set of governance principles for banks to follow.

The size and complexity of the programme must be in line with the depth of a bank's involvement with the medium but should at the very least include input from specialists in compliance, technology, information security, legal, human resources, and marketing.

Although the guidance does not impose additional obligations on financial institutions, the FFIEC says it expects banks to take steps to impose controls on social media, as they would with any new process or product channel.

The agency is inviting comments on the proposals within the next 60 days, before the new rules are formally issued as supervisory guidance.

"Accordingly," says the FFIEC "institutions will be expected to use the guidance in their efforts to ensure that their policies and procedures provide oversight and controls commensurate with the risks posed by their social media activities."

Read the proposed guidance:» Download the document now 110.2 kb (PDF File)

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

23 January, 2013
05 January, 2012
29 September, 2011
24 August, 2011
18 July, 2011
Your browser is unable to support Flash files.

Top topics

Most viewed Most shared
Cash overtaken by non-cash payments in the...
6401 views comments | 48 tweets | 31 linkedin
MasterCard launches personal payments serv...
5680 views comments | 15 tweets | 26 linkedin
US banks bid to crack down on 'card cracki...
5409 views comments | 8 tweets | 10 linkedin
UK opts out of European online payments se...
5266 views comments | 17 tweets | 14 linkedin
Metro Bank to offer consumer loans via Zop...
4558 views comments | 28 tweets | 20 linkedin

Featured job

up to c.£100K base (d.o.e), commission, benefits
London, UK

Find your next job