Social Media:
Consumer Compliance Risk Management Guidance

Summary: The Federal Financial Institutions Examination Council (FFIEC), on behalf of its members, released final guidance on the applicability of consumer protection and compliance laws, regulations, and policies to activities conducted via social media by banks, savings associations, and credit unions, as well as nonbank entities supervised by the Consumer Financial Protection Bureau. The guidance provides considerations that financial institutions may find useful in conducting risk assessments and developing and evaluating policies and procedures regarding social media.

Source: FFIEC

The Highlights:

  • The guidance is intended to help financial institutions understand and successfully manage the potential risks regarding the use of social media.
  • It clarifies that existing consumer protection and compliance laws and regulations apply to activities conducted by financial institutions through social media as they would to activities conducted through other channels.
  • Institutions are reminded that they must properly address risks, including compliance, operational, third-party, and reputation risks, that arise in connection with social media activities.
  • The guidance does not impose any new requirements on financial institutions.