ACI Capital had assets of
$3.7 billion. Fredrick D. Scott, founder, chief
executive and chief information officer for ACI Capital Group, announced the
dissolution of the company’s operations and the liquidation of the company’s assets.
Founded
in 2009, ACI Capital Group was a privately held investment banking and advisory
firm that provided services to corporate and private equity clients; had an asset
management division that consisted of real estate, credit strategies, and
private client services; and managed funds for “accredited” investors including
institutions, pension funds, endowments, and funds of high-net-worth
individuals.
The
Securities and Exchange Commission (SEC) early in April issued another report
on using Facebook, Twitter and other social media, in part because of the
status update made by Reed Hastings, chief executive of Netflix. (See “Tweet Away
(Just Be Sure You Alert Investors).”)
“The
bottom line is that it feels like the regulators are being very innovative and
trying to be proactive, and think through the use of social media,” Joanna
Belbey, social media and compliance specialist with Actiance, told PLANADVISER.
There’s
no need to approach social media as an entirely new species, though, Belbey
said. “It’s just another form of written communication,” she said. “It’s not
special—it’s just an outlet, and as such, it is governed in the same way as
other forms of communication those firms are familiar with.”
From
an adviser’s point of view, the most important question to ask is, are those communications
suitable? Communications must be viewed through a lens of fiduciary responsibility,
Belbey noted.
The
Financial Industry Regulatory Authority (FINRA) takes the position that firms
typically do understand what appropriate communication is, Belbey said, but she
added that the confusion lies in the specifics of using a new technology. What’s
filed and what’s not filed? What are the recordkeeping requirements?
(Cont’d…)
Belbey
recommends that communications be thoroughly considered. Content should be
evaluated for the need for disclosure. Advisers with fiduciary responsibility
should not say anything through social media that would not apply to all the
people following them. Investment recommendations, for example, cannot possibly
apply to everyone.
If an adviser
has 1,000 followers, discussing an equity and making a recommendation would be
ill advised. “You need to know your client’s investment objectives and risk
tolerance,” she said. Social media is a broad form of communication.
“We advise—and
regulators advise—keeping communication more general,” Belbey said. If an
adviser wants to discuss performance, followers can be steered back to the
website for recent performance information. “It goes back to common sense and
being appropriate, and keeping in mind fiduciary responsibility to that
customer.”
Social media
isn’t the place to pitch or sell. It’s more about sharing expertise or
knowledge, according to Belbey. It’s a good channel to share concepts and
information that may not be new, but can be shared in a new way.
And it’s where
people need to go to bring information and connect with a generation of people
who are avid users of social media. “It’s not just Millennials,” Belbey said.
“Social media is used more and more by different generations.”
Belbey suggests
using social media for research. Twitter is a great way to find out what people
are talking about. LinkedIn is a good way to build connections. Belbey
mentioned a registered independent adviser in a small town who wanted to work
with a large company in that town. “He made himself a valuable resource to that
firm by working with individuals,” she explained. Using LinkedIn updates to see
recent hires, he reached out and built relationships. As he came to know more
people, the logical next step was, what does the plan sponsor need? Eventually,
she said, he was able to do some business with the company itself.
Not everyone is
that well versed in using these tools. “Once the risks are identified and
mitigated, you need education on what’s allowed and what’s not allowed,” Belbey
said. “What are the firms’ policies? You need information on best practices.
How do you build engagement?” Pinning down these details is what ensures
success.
Belbey also
noted that status updates and new jobs can represent money in motion—an
opportunity for rollovers. But, she cautioned, social media site communication
should be kept general and used to lead to a one-on-one meeting. “In insurance,
it’s called the 24/7 kitchen table,” Belbey said—simply a way for people to
talk one-on-one and build relationships.