On April 2, 2013, the U.S. Securities and Exchange Commission (SEC) issued guidance in the form of the Report of Investigation under Section 21(a) of the Securities Exchange Act of 1934 which indicates that social media channels—such as Twitter and Facebook—could be used by public companies to disseminate material information, without running afoul of Regulation… Continue Reading
Category Archives: Securities Law
Subscribe to Securities Law RSS FeedThe Social Media Experiment: Challenges for Broker-Dealers and Investment Advisers
Posted in Financial Institutions, Investment Management Law, Securities LawThe announcement by a Wall Street firm that it plans to give its financial advisers limited access to social media websites has been viewed by many as inevitable. Morgan Stanley’s foray into the fast-changing world of social media highlights the difficulties faced by broker-dealers and investment advisers and the regulators who oversee them. As more… Continue Reading
The JOBS Act Opens Door for Crowdfunding Offerings
Posted in Crowdsourcing, JOBS Act, SEC, Securities LawFor several months, various legislative proposals that would ease regulatory and financing burdens on smaller companies have been discussed by legislators, business leaders and commentators. These proposals were brought together under the Jumpstart Our Business Startups (JOBS) Act (H.R. 3606). The JOBS Act was passed by Congress on March 27, 2012 and signed into law… Continue Reading
Announcing: MoFo Jumpstarter
Posted in Crowdsourcing, JOBS Act, SEC, Securities LawRelevance of Securities Laws in the Social Media Age – Seminar Series
Posted in Event, SEC, Securities LawJoin us for this timely seminar series in New York, Palo Alto, and San Francisco. The use of social media by public companies and their employees raises many legal issues, such as the application of the federal securities laws to communications made through company websites, blogs, Twitter and Facebook. Those communications implicate laws regulating selective… Continue Reading
Updated FINRA Guidance on Social Media Websites and the Use of Personal Devices
Posted in Securities LawOn August 18, 2011, the Financial Industry Regulatory Authority, Inc. (“FINRA”) issued Regulatory Notice 11-39 providing guidance to broker-dealer members on social networking websites and business communications. The notice represents FINRA’s first update to its guidance on social media since the release of Regulatory Notice 10-06 in January 2010. Regulatory Notice 11-39 merely clarifies existing… Continue Reading
Crowd Control: SEC Cracks Down on Crowdfunding Venture
Posted in Securities Law“Crowdfunding” or “crowdsourced funding” is a new outgrowth of social media that provides an emerging source of funding for a variety of ventures. Crowdfunding works based on the ability to pool money from individuals who have a common interest and are willing to provide small contributions toward the venture, which potentially collectively add up to… Continue Reading