Kitty Parry, chief executive of Templars Communications, has been leading the way in creating a charter and said she is due to meet with the Financial Conduct Authority in the coming weeks.
Templars has already fed back its ideas and input from its clients to the FCA, which recently confirmed it will publish guidance early this year.
Ms Parry, who said three major firms are on board with her plans, believes the current advice is inadequate and needs clarity to assuage the regulatory fears of finance firms.
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She told Financial Planner: "The guidelines as they stand for firms don't take into consideration the situations that social media puts up or enables.
"We believe a social media charter for the finance industry is necessary because of the business opportunity the financial services sector has to grow by using social media tools effectively and the clear demand and need for firms to understand exactly how they can communicate through social media, whilst remaining compliant with regulations."
She said sites like Twitter are even more relevant to Financial Planning firms.
She said: "I think it's more important because of the niche nature of their service."
Companies could use sites such as Twitter to boost their business but they lack understanding about using it effectively, Ms Parry said.