U.S. bank regulators this week proposed social media guidelines to ensure banks and other financial services firms under their authority comply with regulations and consumer protections in their social media activities. The proposal calls for clear procedures on governance, monitoring, training and other issues.
The proposal by the Federal Financial Institutions Examination Council which comprises U.S. bank regulatory agencies and representatives of state regulators, was in response to requests that have from the industry for guidance, the Office of the Comptroller of the Currency said.
"The use of social media by a financial institution to attract and interact with customers can impact a financial institution’s risk profile," the proposal said. "The increased risks can include the risk of harm to consumers,compliance and legal risk, operational risk, and reputation risk. Increased risk can arise from a variety of directions, including poor due diligence,oversight, or control on
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