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Tag Archives: SEC

New Regulatory Guidance on Use of Social Media by Investment Advisers

Posted in Investment Management Law

Acknowledging the growing demand by consumers for information through social media, the Division of Investment Management set some ground rules on how investment advisers can use social media and publish advertisements featuring public commentary about them from social media sites. Under the new rules, investment advisers may refer to commentary published in social media without… Continue Reading

Behind the Curve – Are Legal and Regulatory Concerns Preventing UK Financial Service Companies From Fully Harnessing Social Media?

Posted in Financial Institutions

Today’s consumers want to engage in a new way with the companies from which they buy goods and services.  Although some UK financial services organisations are leading the way in terms of their use of social media, on the whole, engagement in social media by UK financial services firms is still relatively limited. This is… Continue Reading

Stop Insider Tweeting!—Feds Eye Social Media for Securities Shenanigans

Posted in Financial Institutions, SEC, Securities Law

Article courtesy of Morrison & Foerster’s MoFo Tech As financial institutions and investors turn to social media to instantly share snippets of news and potential clues about market trends, the FBI and SEC are monitoring such postings for evidence of insider trading and improper investment information. Companies must comply with pre-Internet federal securities laws covering… Continue Reading

SEC Offers Guidance on Use of Social Media for Public Disclosure

Posted in SEC, Securities Law

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

SEC Releases Proposed Rules Relaxing Ban on General Solicitation

Posted in SEC

Following this morning’s meeting, the Commission has published its proposed rules: http://www.sec.gov/rules/proposed/2012/33-9354.pdf Summary The SEC published its guidance today as a proposed rule, with a comment period, and not as an interim final rule. The SEC proposes to amend Rule 506 to provide that the prohibition against general solicitation contained in Rule 502(c) shall not… 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