More and more, the financial services industry is realizing the business benefits of online social media tools—as well as the legal and compliance risks that come along with them.

A just-released survey of nearly 200 financial advisers found that more than 60 percent already use social media for business purposes, that figure is expected to reach 71 percent by 2011.

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Jaclyn Jaeger is a freelance contributor to Compliance Week after working for the company for 15 years. She writes on a wide variety of topics, including ethics and compliance, risk management, legal,...