Massachusetts on Social Media: It's Advertising

Massachusetts has outlined social media guidance for the 576 investment advisers in the state. State regulators are stressing record-keeping, periodic review and monitoring sites such as LinkedIn, Facebook and Twitter. Secretary of the commonwealth, William Galvin, spoke directly about social media saying that what an investment adviser posts on a social media site is subject to the same record-keeping, regulations and restrictions as other forms of advertising.

The guidelines also mentioned that social media compliance technology is available and can help with record retention efforts.

Interestingly, the state guidelines followed the Securities and Exchange Commission advice on how to treat "liking" on Facebook. State regulators stipulate that a client's "like" of an adviser's Facebook page doesn't constitute a testimonial if there isn't anything else added. However, it could be considered a testimonial under certain circumstances.

Massachusetts on Social Media: It's Advertising - Financial Planning