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Category Archives: Social Media

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FINRA Requests Data on Member Firms’ Social Media Use

Posted in FINRA Compliance, SEC Compliance, Social Media

The Financial Industry Regulatory Authority announced that it sent targeted examination letters asking broker-dealer members about their social media use.  See http://www.finra.org/Industry/Regulation/Guidance/TargetedExaminationLetters/P282569. In the letter, FINRA warned that each member firm’s written and electronic communications are subject to periodic spot checks.  Among other questions, FINRA asked the member firms to explain their use of social… Continue Reading

SEC AGAIN LOOKING AT CYBERSECURITY ISSUES

Posted in Cyber-Security, Social Media

This is another area where we consistently blog because it is a constant issue.  The SEC is now reviewing public companies’ disclosure relating to cyber security risks to determine if additional guidance is needed in this area. In 2011, the SEC Division of Corporation Finance advised firms to disclose compromises regarding their data security. Since… Continue Reading

What Does FINRA Rule 3270 Mean To You

Posted in Broker-Dealer Regulation, Compliance and Supervision, FINRA Compliance, FINRA Enforcement, Money Laundering, Ponzi Schemes, Registered Representatives, Social Media

The outside business activities of registered persons have the potential for causing your firm significant liability, especially where those activities are unknown to the firm, involve firm customers and constitute a fraud.  FINRA 3270 only requires the registered person to provide notice to the firm before engaging in the activity, but should the firm do more…. Continue Reading

Do You Want To Know What Keeps The Regulator Up At Night

Posted in Broker-Dealer Regulation, Compliance and Supervision, Financial Industry Trends, FINRA Compliance, FINRA Enforcement, Investment Adviser Regulation, SEC Compliance, SEC Enforcement, Social Media

At a regulator’s round table during a recent National Society of Compliance Professionals meeting, the regulators framed out those issues that are keeping them up at night.  The issues include: The increasing complexity of investment products. Social media beyond things like Twitter or LinkedIn. Cyber security. Cyber fraud; i.e. hacking into customer accounts. AML issues… Continue Reading

So What Do You Need To Do With BrokerCheck

Posted in Broker-Dealer Regulation, Dodd-Frank, Financial Industry Trends, FINRA Compliance, Social Media

While many brokers breathed a sigh of relief when FINRA withdrew its proposal requiring members to include a “prominent description of and link to” BrokerCheck on their web sites and social media pages, this is probably not the end of this matter. Many firms complained about the proposal because it presented many administrative nightmares; such… Continue Reading

What You Need To Know About Disclosures Through Social Media

Posted in SEC Compliance, SEC Enforcement, Social Media

In recognition of the pervasive use of social media, the SEC recently issued guidance that public companies could disseminate material information through social media without violating Regulation FD.  The question remains what is the best way to use social media in this fashion. The critical aspect of complying with Regulation FD is to make sure that… Continue Reading

Securities Employees’ Social Media Access Cannot be Touched by their California Employers

Posted in Social Media, State Enforcement

On January 1, 2013, California joined Maryland and Illinois in restricting securities employers’ access to their employees’ and job applicants’ social media accounts.  This new law was announced on Twitter, and provides that an employer cannot require or request an employee or applicant to: disclose a user name or password for the purpose of accessing personal… Continue Reading

How To Be Great At Using Social Media

Posted in Financial Industry Trends, Social Media

In a recent InvestmentNews article by Stephanie Sammons, she highlighted that the major problem financial advisors have with social media is “knowing what to share on social networks.”  Assuming that your firm allows for you to market your services through social media, this article gave sound guidance on what customers and potential customers would want to… Continue Reading

Did You Hear That FINRA May Force BDs To Wear A Scarlet Letter?

Posted in Broker-Dealer Regulation, Compliance and Supervision, Dodd-Frank, FINRA Compliance, Registered Representatives, Social Media

Much like the character in the famous Nathaniel Hawthorne story, FINRA is looking force broker-dealers to wear a mark on all of their social media.  FINRA wants to amend Rule 2267, forcing member firms to have a link to BrokerCheck on the websites and all other forms of social media. The stated purpose of doing… Continue Reading

Blogging and Social Media in the New Year

Posted in Social Media

Of course, this is the time of the year we all make our resolutions and determine how we plan on (hopefully) conducting ourselves in the New Year.  I, therefore, thought it would be the appropriate time to lay out my social media priorities for the upcoming year. Initially, I had an interesting year blogging and using Twitter and LinkedIn.  In fact, I… Continue Reading

Slow IPO Market Means Fewer Securities Lawsuits

Posted in Compliance and Supervision, Financial Industry Trends, Securities Class Actions, Social Media

If you had asked me yesterday whether there were a lot of securities lawsuits last year, I would have said, “Oh, absolutely.”  And I would have been absolutely wrong.  Lawsuits were up in 2011 compared to 2010, but still below the recent average.  As the NYTimes reports, according to a new report by Stanford Law and Cornerstone Research, “188… Continue Reading

If England Attacks Executives’ Cheques, are US Execs’ Checks Next?

Posted in Corporate Governance, Dodd-Frank, Financial Industry Trends, Social Media

In law, America tends to follow in the footsteps of its older sister, Britain.  Sure, sure, we went our own way with that little Constitution thing back in the day.  But as of late, and particularly in the world of securities law and corporate governance, we’ve been following in their footsteps a bit.   Wall Street… Continue Reading

FINRA And Social Media, Is Its Latest Proposal Anything To Blog About

Posted in Broker-Dealer Regulation, Compliance and Supervision, Financial Industry Trends, FINRA Compliance, FINRA Enforcement, Registered Representatives, Social Media

For anyone reading this post, you appreciate the value of social media.  It looks as though FINRA is finally prepared to do so as well. FINRA recently proposed changes to its rules governing communications with investors.  In doing so, FINRA has proposed easing its requirements of pre-approval for a broker-dealer’s use of social media.  Chief among the… Continue Reading

FINRA Provides More Guidance On The Use Of Social Media

Posted in Broker-Dealer Regulation, Compliance and Supervision, FINRA Enforcement, Social Media

By way of overview of the currently regulatory environment, FINRA highlighted that member firms have an obligation to maintain records of business communications regardless if those communications appear on social media. FINRA also reminded member firms that the use of static social media for a business purpose requires pre-approval by member firm. Conversely, interactive electronic… Continue Reading