As advisors navigate the tricky terrain of using social media to communicate with clients, a recent Financial Industry Regulatory Authority (FINRA) enforcement action taken against an overenthusiastic Twitter user spells out exactly what sort of messages advisors should avoid.
FINRA disciplinary action taken against Jenny Quyen Ta, the founder of California-based Titan Securities, includes a fine of $10,000 and suspension from association with any FINRA member for a full year, through Dec. 5, 2011. The action was originally filed in January and released Friday in FINRA’s quarterly disciplinary report.
Among a number of findings, FINRA said that Ta failed to inform a registered firm principal that she had a Twitter account that she used to tout a particular stock.
FINRA determined that Ta’s tweets “were unbalanced, overwhelmingly positive and frequently predicted an imminent price rise, and Ta did not disclose that she and her family members held a substantial position in the stock.”