The Federal Financial Institutions Examination Council (“FFIEC”) issued final Guidance on December 11, 2013 concerning the risks faced by banks, savings associations, and credit unions when offering their services through “social media” channels. The Guidance is effective immediately.
The term “social media” is broadly defined and includes most, if not all, popular formats. The final Guidance discusses potential operation, compliance, and reputation risks, in a social media context, that may exist within the laws and regulations under which financial institutions operate. While some of these laws and regulations are familiar, others are less so, and the total number may surprise some people.
Financial institutions and their service providers should consider this FFIEC Guidance as a part of their risk management when offering their services by way of social media.
Ross Green can be reached at 412-594-5644 if you want more information.