Investment Firms Allowed to Use Social Media Under SEC/FINRA Rules - Page 2
Price said that a common question he hears from firms is from those who prohibit all Social Media involvement by their representatives. Their concern is whether a firm is meeting the regulatory requirements when they have no Social Media supervisory functions in place because they have prohibited the activity.
Regarding investment business blogs, Price explained that they "require prior approval" by a firm before they are published because they fall into the category of a static communication that includes any form of advertising.
FINRA has followed up that Regulatory Notice 10-06 with webinars, podcasts, and seminars to assist their member firms in the ongoing process of adapting regulatory requirements to Social Media tools available to the rest of the business world.
Firms now the option of fully engaging in Social Media, which is rapidly becoming less an option and more a matter of survival.