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National Planning Holdings Picks Erado for Social Media Compliance Service

By Rajani Baburajan
TMCnet Contributor

National Planning Holdings (NPH), an independent broker-dealer network, announced that it selected Erado Message Control Solutions (Erado), a provider of hosted solutions for capture, review and archiving of electronic communications, to offer social media compliance services.

Leveraging the Erado solution, NPH is expected to roll out social media capabilities to more than 3,500 affiliated representatives by the fall of 2011.

Erado's technology suite will enable NPH to allow its representatives to utilize the interactive social networks of LinkedIn, Facebook and Twitter to communicate with clients and establish innovative business development programs.

The benefits to National Planning Holdings will include monitoring, tracking and archiving its representatives' social media activity for compliance purposes. NPH is known for technology innovation. The company is trying to help its representatives utilize the latest resources available to build their businesses.

“Clearly, social media has reached critical mass and is becoming an increasingly important communication tool for financial advisers,” said Jim Livingston, president and chief executive officer of National Planning Holdings, in a statement. “However, managing the compliance implications of social media activity has been a challenge, and our relationship with Erado will help us address these issues head-on.”

The partnership with Erado covers each of the four broker-dealers in the NPH network: INVEST Financial Corporation, Investment Centers of America, National Planning Corporation, and SII Investments.

“We value our strategic relationship with NPH, and are pleased to be working with the firm," said Craig Brauff, chief executive officer of Erado. “The financial services industry is increasingly recognizing the power of social media, and the effect it can have on marketing and communications efforts.”

Recently Erado Message Control Solutions announced it has signed a multi-year agreement to provide social-media compliance services to LPL Financial. Erado has been offering the service to LPL Financial since May to track and archive advisers' use of LinkedIn (News - Alert), Facebook and Twitter.