Advisors jumping onto Threads could create compliance headaches
Financial advisors are jumping onto Threads, but the new social media app from Meta Platforms Inc. could create a new set of compliance headaches for the wealth management industry.
The micro-blogging service launched Thursday as a direct competitor to Twitter and has already surpassed 70 million registrations, Meta CEO Mark Zuckerberg said on Threads. Threads dethroned ChatGPT, the chatbot from OpenAI, as the most rapidly downloaded app ever, according to the New York Times, and is already facing legal retaliation from Twitter.
Some wealth management firms have joined early to secure their corporate brand name on the platform, such as Morgan Stanley’s ETrade, asset management firm Potomac Fund Management, and registered investment advisor Pearl Financial Planning. Others are more active, especially popular financial Twitter personalities like Douglas Boneparth, president of Bone Fide Wealth, and Tyrone Ross, CEO and co-founder of Turnqey Labs. Even Josh Brown — the CEO of Ritholtz Wealth Management, who was perhaps the most popular wealth management personality on Twitter before drastically reducing his usage — seems to have come out of posting retirement to actively engage on Threads.
Others are just hoping to find a replacement to Twitter, which has seen nearly constant change under the leadership of billionaire Elon Musk, including recent changes to Tweetdeck, which many advisors use to make the site more useful for work. George Papadopoulos, a self-described Twitter power user and financial planner who now coaches advisors rather than working with clients, is hoping Threads can make it because other alternatives, like Mastodon, BlueSky and Post, don’t cut it.
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