The major Wall Street brokerage firm Morgan Stanley Smith Barney has jumped into the social networking space by finally allowing its brokers to communicate information via Twitter, Reuters reports.

Starting in June, a test group of 600 MSSB advisors will be given the opportunity to make full use of both Twitter, a micro-blogging service, and LinkedIn, a professional networking site, to disseminate information and build client networks. Social media sites used to be largely off-limits to financial practitioners and it appears Morgan Stanley will be the first organization of its type to use these resources, the news service said.

"The emergence of social media has changed the way in which people communicate with each other and companies interact with clients," Andy Saperstein, the wealth management head at MSSB, was quoted as saying.

It is often compliance issues and fear of regulatory disapproval that hold wealth managers back from jumping into the social media fray. Furthermore, the fear factor rose significantly when the US regulator, the SEC, began conducting social media sweeps, requesting information from investment advisors about social networking activities. However, these sites are touted by many as powerful tools for building client relationships.

Because online venues are monitored closely by regulators, Morgan Stanley will need to install technology to capture and retain all communications on approved social networking sites, according to the report. In addition, while advisors will be allowed to use the interactive features of LinkedIn, they will not be allowed to "recommend" themselves or other financial advisors. The programme will reportedly be expanded to Morgan Stanley's entire 17,800 advisor force within six months.