Investment advisers seeking clarity about the appropriate use of social networking Websites such as Facebook, Twitter, and LinkedIn now have some much-needed guidance from the Securities and Exchange Commission's Office of Compliance Inspections and Examinations. Anyone else worried about social media risks would do well to give it a read, too.
In early January the department issued a “National Examination Risk Alert,” citing 13 different factors investment advisers should consider when creating a social media policy that satisfies the anti-fraud, compliance, and recordkeeping provisions of federal securities laws. It also discusses the potential risks associated with third-party content.
“As investment advisers increasingly ...