Jan. 23, 2013 – Guidance on how credit unions, banks, savings associations and regulated nonbank entities should ensure their social media activities comply with federal consumer protection and compliance requirements was proposed for comment Tuesday by the Federal Financial Institutions Examination Council.
The council, which includes federal financial institution prudential regulators, CFPB and state representatives, said the guidance is meant to answer an institution’s questions about how it should address consumer compliance matters and legal, reputation and operational risks it takes on when using social media to market products, offer incentives, drive membership and more.
The proposal lists a wide variety of social media, such as micro-blogging sites (Facebook, Google Plus, Twitter, MySpace), photo and video sites (Flickr, YouTube), networking sites and more. It also seeks input on what other types of social media are used by financial institutions but not addressed in Tuesday’s proposal.
NAFCU plans to comment on the proposed guidance, said Carrie Hunt, NAFCU’s general counsel and vice president of regulatory affairs. “We continue to look for ways for NCUA to be more forward-thinking rather than overlay old rules on new technologies,” she said.
Following a sustained effort by NAFCU to encourage action, NCUA last year opined that video teller machines can satisfy the definition of a “facility” for purposes of expansion, a move that greatly eases the ability of multiple-common-bond credit unions to increase membership.
Comments will be due 60 days after the proposed guidance is published in the Federal Register.