Securities Law Updates | New Statutes, Regulations and Rules
January 28, 2010
FINRA Issues Guidance to Firms and Brokers on Communications with Public through Social Networking Web Sites
Guidance on Blogs and Social Networking Web Sites
Regulatory Notice 10-06, 1/25/2010
The Financial Industry Regulatory Authority (“FINRA”) has issued guidance to securities firms and brokers regarding the use of social networking Web sites such as Facebook, Twitter, LinkedIn and blogs to communicate with the public.
The guidance in Regulatory Notice 10-06, which is presented in Q&A format, clarifies the responsibilities of firms to supervise the use of social networking sites to ensure that recommendations are suitable and their customers are not misled. The Notice also addresses the recordkeeping and other responsibilities of firms.
“Social networking sites and blogs raise new regulatory challenges, particularly in the areas of supervision, advertising and books and…
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