Today's consumers get home decor ideas from Pinterest, fashion advice from Instagram and stock tips from Reddit.
Social-media-influenced investing has become so prevalent that both the Securities and Exchange Commission and Financial Industry Regulatory Authority released alerts warning about the risks in doing so earlier this year.
Social media's influence on investor perspectives places financial advisors in a new role as moderator. Advisors must find a way to mediate between their own responsibility to protect their clients' financial interests and their clients' fear of missing out on the next Reddit hot tip.
To gain insight into how advisors can walk this line without damaging their relationship with their clients, we spoke with Ted Wozniak, head of asset management distribution for SEI, a global provider of investment processing, investment management and investment operations solutions.
Wozniak shares his unique take on how advisors can allow clients to explore their options without putting their clients' financial futures at risk. Here are edited excerpts from that interview.
How have financial advisors' roles changed now that social media plays a more prominent role in investors' lives?
Social media has made investing feel more accessible and less opaque.
The barrier to participate is a lot lower, meaning more people want to get involved. However, the downside to this is that it has increased the frequency of investment-related advice in social channels and has...
Read Full Story: https://money.usnews.com/financial-advisors/articles/q-a-how-advisors-can-address-social-media-inspired-investment-ideas-from-clients
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