SEC Doesn't 'Like' Facebook

Attorney Todd Cipperman of Cipperman Compliance Service argues that the Risk Alert from the SEC on January 4, 2012, Investment Adviser Use of Social Media, will keep more advisers from flocking to social media. The Risk Alert was released hot on the heels of enforcement action from the SEC against an Illinois financial adviser who was charged with using LinkedIn while providing false and misleading information on what turned out to be fictitious products. It's also mentioned that this type of scam can be perpetrated online or offline, in which a social media compliance solution would only work for social networking websites.

According to those interviewed for this article, the alert proposed a number of ways content on social media websites could be reviewed, but has been criticized for lack of specific usage guidelines. Regardless of which camp your company falls, the SEC Risk Alert serves as a wake-up call and could serve as the catalyst in social media discussion in your organization.

SEC Doesn't 'Like' Facebook - Securities Technology Monitor