SEC Sweeping Firms About Social Media
According to Investment News, the SEC has begun a sweep of investment advisor
firms to extract information about their use of social media such as Facebook,
Twitter, and LinkedIn. The request list
appears very broad, asking for “all
documents sufficient to identify [Adviser]’s involvement with or usage of
social media websites” including all
communications made by or received by an adviser on social media sites. The SEC wants to review all policies and
procedures related to the use of social media including the approval process
for review of prospective communications.
The SEC also wants to know how a firm monitors personal, non-business
uses of social media by adviser personnel.
OUR TAKE: Even if a firm has policies and procedures
related to client communications, it should consider specific P/P for social
media. It appears that the SEC also
wants firms to review personal use of social media to monitor for securities