As you may know, the SEC recently released a National Examination Risk Alert regarding investment advisor use of social media. Don’t be alarmed: Compliance and regulation parameters have not changed. The SEC is simply offering financial professionals some valuable advice that is definitely worth reading and considering.
Broken down into three sections (staff observations, third-party content and recordkeeping responsibilities), the report encourages investment advisors to constantly gauge the effectiveness of their compliance policies and offers a variety of key factors to consider regarding the use of social media. The SEC report is quite lengthy, so I will highlight just the first section regarding staff observations.