SEC sends sharp warning to advisors using social media

I may have missed something, but I don’t see a “sharp warning” in here anywhere.

It sounds like SOP for the SEC in “urging advisors to put specific social media policies and procedures in place.” In fact, don’t advisors need specific policies and procedures in place for most activities?

As far as the SEC investigation of “Anthony Fields of Lyons, Ill.” who apparently “offered more than $500 billion in fictitious securities through various social media websites.” I’m guessing the main emphasis is on the fictitious securities. I’m pretty sure you’re not allowed to do that regardless of how you promote it.

I’m inclined to agree with Dan Bernstein – doesn’t feel like there is anything new here.

I had conversations with Robert Kaplan (SEC), Joe Price (FINRA) and Drew Bowden (SEC) last week and agree with TJ that recent communications are not meant to be new rules, but just more guidance.

Social media can help advisors with client satisfaction and gain new business. They should not be turned away from using social networks. They just need to use common sense, just like they would use with any other marketing tool.

Mike Byrnes
President of Byrnes Consulting, LLC
www.byrnesconsulting.com
@byrnesconsultin