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Eleven Broker Dealers to Benefit from Erado's Social Media Compliance

By Mini Swamy
TMCnet Contributor

Eleven broker-dealers will now benefit from Erado’s exclusive agreement that will provide them with the ability to engage in social networking sites while staying FINRA compliant.

Social media sites such as LinkedIn, Facebook, Twitter (News - Alert), and blogs are increasingly being used as effective marketing tools and are subject to compliance rules and liability in the same way that e-mail is.

As per the agreement, Erado, a fast growing business-tech company, is expected to better enable the broker firms to regularly review their representatives’ electronic messages, document the visual inspections, supervise and preserve client communications.

“We’ve had a tremendous start to 2012 and are very excited to be working with these broker-dealers,” said Craig Brauff, CEO at Erado. “Their decision to use Erado’s solution reaffirms how well our social media compliance provides value, and a lower total cost of ownership through extensive integration, with existing advertising review, archiving, and surveillance solutions.”

Company officials indicated that by providing them with compliance tools that allow tracking and archiving of social media activity, these firms can effectively monitor, supervise, manage and enforce cost-effective compliance and records retention policies.

Deep scan technology is used to search e-mail, social media posts and action is taken according to the organization’s compliance policies.

Erado’s supervisory and compliance services are automated with a set of rich featured auditing tools, which company officials said would reduce workloads of review and notation process time.

In other news, Erado recently announced its exclusive social media partnership with Quest CE, a provider of compliance training to the financial services industry. According to a release, the strategic partnership will implement Erado's social media compliance services with Quest CE's FINRA firm element training and tracking services.