Recently in Industry-Specific Tools & Practices Category

In a Regulatory Notice released earlier today, the Financial Industry Regulatory Authority (FINRA) opined that brokerage firms and their registered representatives must retain records of all communications related to the broker-dealer's business that are made through public blogs and social media sites, such as Facebook, LinkedIn, and Twitter.

"Every firm that intends to communicate, or permit its associated persons to communicate, through social media sites must first ensure that it can retain records of those communications as required by Rules 17a-3 and 17a-4 under the Securities Exchange Act of 1934 and NASD Rule 3110. SEC and FINRA rules require that for record retention purposes, the content of the communication is determinative and a broker-dealer must retain those electronic communications that relate to its “business as such.”

Brokerage firms will now be required to archive and make discoverable business-specific content produced by their employees. They will also have to establish and maintain procedures that ensure a supervisor has either approved an interactive electronic communication before it is posted, or that a "risk-based" method of post-communication review exists and is exercised.

"While prior principal approval is not required under Rule 2210 for interactive electronic forums, firms must supervise these interactive electronic communications under NASD Rule 3010 in a manner reasonably designed to ensure that they do not violate the content requirements of FINRA’s communications rules.

Firms may adopt supervisory procedures similar to those outlined for electronic correspondence in Regulatory Notice 07-59 (FINRA Guidance Regarding Review and Supervision of Electronic Communications). As set forth in that Notice, firms may employ risk-based principles to determine the extent to which the review of incoming, outgoing and internal electronic communications is necessary for the proper supervision of their business. "

In addition, FINRA's guidance states that all organizations under its purview must establish and communicate social media usage guidelines for their employees, and that those individuals must also receive employer-provided training on those guidelines.

"Firms must adopt policies and procedures reasonably designed to ensure that their associated persons who participate in social media sites for business purposes are appropriately supervised, have the necessary training and background to engage in such activities, and do not present undue risks to investors. Firms must have a general policy prohibiting any associated person from engaging in business communications in a social media site that is not subject to the firm’s supervision. Firms also must require that only those associated persons who have received appropriate training on the firm’s policies and procedures regarding interactive electronic communications may engage in such communications."

FINRA's guidance marks the beginning of a new era for financial services companies and their use of external social media. However, the Financial Services sector is not the only one that will be subject to regulation of communications made via blogs and other types of social software. An IBM Senior Product Manager related last week at Lotusphere that IBM customers in the Healthcare and Utilities industries were also beginning to ask about the management of user-generated and social content.

If your organization is currently required to comply with regulations pertaining to the use of email and instant messaging for business communication, expect to see similar requirements placed on your management of external blog and social media site posts in the near future. At some point, it is likely that these regulations will also be applied to internal communications conducted via enterprise social software.

Is your organization ready for this new era? Gilbane Group's seasoned advisors can help you prepare to manage user-generated and social content. Contact us today to learn how.

O'Reilly's Gov 2.0 events took place last week. We've had some time to think about what the current wave of activity means to buyers and adopters of content technologies.

Both the Expo and Summit programs delivered a deluge of examples of exciting new approaches to connecting consumers of government services with the agencies and organizations that provide them. 

• At the Expo on Sept 8,  25 speakers from organizations like NASA, TSA, US EPA, City of Santa Cruz,  Utah Department of Public Safety, and the US Coast Guard provided five-minute overviews of their 2.0 applications in a sometimes dizzying fast-paced format.
• Sunlight Labs sponsored an Apps for America challenge that featured finalists who combined federal content available on Data.gov and open source software in some intriguing applications, including DataMasher, which enables you to mash up sources such as stats on numbers of high school graduates and guns per household.
• The Summit on Sept 9 and 10 featured more applications plus star-status speakers including Aneesh Chopra, the US's first CTO operating under the Federal Office of Science and Technology Policy; Vinton Cerf, currently VP and evangelist at Google; and Mitch Kapor.

A primary program theme was "government as platform," with speakers suggesting and debating just what that means. There was much thoughtful discussion, if not consensus. Rather than report, interested readers can search Twitter hash tags #gov20e and #gov20s for comments.

From the first speaker on, we were immediately struck by the rapid pace of change in government action and attitude about content and data sharing. Our baseline for comparison is Gilbane's last conference on content applications within government and non-profit agencies in June 2007. In presentations and casual conversations with attendees, it was clear that most organizations were operating as silos. There was little sharing or collaboration within and among organizations. Many attendees expressed frustration that this was so. When we asked what could be done to fix the problem, we distinctly remember one person saying that connecting with other content managers just within her own agency would be a huge improvement.

Fast forward a little over two years to last week's Gov2.0 events. Progress towards internal collaboration, inter-agency data sharing, and two-way interaction between government and citizens is truly remarkable. At least three factors have created a pefect storm of conditions: the current administration's vision and mandate for open government, broad acceptance of social interaction tools at the personal and organizational level, and technology readiness in the form of open source software that makes it possible to experiment at low cost and risk.

Viewing the events through Gilbane's content-centric lens, we offer three takeaways:

• Chopra indicated that the formal Open Government directives to agencies, to be released in several weeks, will include the development of "structured schedules" for making agency data available in machine-readable format. As Tim O'Reilly said while interviewing Chopra, posting "a bunch of PDFs" will not be sufficient for alignment with the directives. As a result, agencies will be accelerating the adoption of XML and the transformation of publishing practices to manage structured content. As a large buyer of content technologies and services, government agencies are market influencers. We will be watching carefully for the impact of Open Government initiatives on the broader landscape for content technologies.
• There was little mention of the role of content management as a business practice or technology infrastructure. This is not surprising, given that Gov2.0 wasn't about content management. And while the programs comprised lots of show-and-tell examples, most were very heavy on show and very light on tell. But it does raise a question about how these applications will be managed, governed, and made sustainable and scalable. Add in the point above -- that structured content will now be poised for wider adoption, creating demand for XML-aware content management solutions. Look for more discussion as agencies begin to acknowledge their content management challenges.
• We didn't hear a single mention of language issues in the sessions we attended. Leaving us to wonder if non-native English speakers who are eligible for government services will be disenfranchised in the move to Open Government.

All in all, thought-provoking, well-executed events. For details, videos of the sessions are available on the Gov2.0 site.

In a recent consulting project, the Gilbane Group had the opportunity to get a hands-on look at the current version of the Clickability Platform. Several marketing-oriented product enhancements over the past year will be of particular interest to our clients. While the product maintains its strengths in traditional online publishing (due in part to its origins in the publishing industry), there have been major improvements in areas such as analytics and reporting, social computing, and user interface design. In fact, Clickability has re-oriented its Platform to align specifically with the usage and campaign requirements of non-technical online marketing managers. Although product features such as in-context editing, workflow, library services, and user management, remain important and robust parts of the product, the new social computing functionality for online visitor collaboration have done much to bring Clickability to the forefront of Web 2.0-oriented content management offerings. This functionality includes out-of-the-box support for visitor loyalty profiles, discussion boards, visitor ratings, blogs, wikis, and podcasts.

Combining these new social computing components with improvements to Clickability’s analytics and reporting capabilities makes the product a natural fit for companies looking for a Web content platform to support online marketing initiatives. Areas of improvement within analytics and reporting include visitor analysis, profile targeting and reporting, campaign management, A/B split testing, reporting dashboards, ad weighting, and embedded in-context statistics. While organizations looking for a Web content management application to support traditional online publishing can still successfully use the product, they may find the marketing-orientation of the product unnecessary or awkward. And because good analytics and reporting in the service of online campaign management delivers high value for online retailers (in the form of higher average sales prices and better conversation rates among online shoppers), the product may demand a higher price than those publishing static HTML sites can justify. But for at least one of Clickability’s target audiences - online retail marketing managers - the new version of this platform warrants careful, hands-on consideration.