Using Social Media? Better Check With The SEC

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.

Here are 4 key observations from the report:

1) Overlapping protocols that apply to advertisements, client communications or electronic communications, which may or may not specifically include social media use.

2) Confusion about which procedures or standards apply to social media.