Both regulators and securities firms are increasingly making use of social media, but it remains early days for these and other tech tools, according to research from global securities regulators.

The International Organization of Securities Commissions (IOSCO) Thursday published a report detailing the results of a series of surveys it carried out in the second half of 2013 to examine the use of both social media and tools to provide automated advice in the securities industry. The research generally finds that the use of these technologies is at an early stage for both the industry and regulators, but that their use is growing.

IOSCO reports that its research into the use of social media by securities industry firms finds that it is “in its nascent stage”. The most commonly used sites, it reports, are Facebook, Twitter and LinkedIn.

From a regulatory perspective, IOSCO notes that, “Regulators have neither defined social media, nor prohibited its use by intermediary firms.” Although it did find that, across the globe, firms that permit the use of social media communication prohibit their staff from making recommendations, or providing investment advice, this way.

It also reports that regulators are increasingly using social media sites in the supervision efforts, “to identify personal relationships between parties and as a source of general information.”

IOSCO’s research also found that the regulators generally have not prohibited the use of automated advice tools. Very few have specific rules or guidance related to the use of automated advice, it notes. Instead, most regulators rely on their existing rules regarding suitability, disclosure, supervision and record keeping.

And, firms are increasingly making use of these tools, IOSCO notes, particularly to assist them in meeting their suitability and know-your-client (KYC) obligations. It also reports that the vast majority of firms that generate recommendations with these tools use them to recommend asset classes. It reports that collective investment schemes, mutual funds, exchange traded funds and equity classes are the most common products recommended.

The report notes that it is “too early to identify the unique challenges posed by social media and automated advice. Nor can definitive conclusions be drawn about the best practices in the use and oversight of these mediums.” It says that the research has helped regulators understand how firms use these tools and the challenges involved in overseeing them.

“The work represents an important international initiative to obtain data on previously unknown issues and where use and oversight of these mediums continues to evolve,” it says. “Results from these IOSCO surveys provide an interesting snap-shot of how regulators and intermediaries use (or do not use) and oversee these technologies.”

IOSCO says that over the coming 12 to 24 months it intends to revisit these issues to determine whether further work is warranted.