FINRA issue guidelines for use of social media networking sites

FINRA has just released an updated set of guidelines covering the use of Social Media Websites, Blogs and Networking sites by FINRA registered firms, and their employees.

Today’s release follows the initial FINRA publication Social Media Web Sites in January 2010, which focused on: Record keeping, Determination of ‘recommendations’ based on client suitability criteria, and what types of social media (ie blogs/twitter etc) constitute an “interactive electronic forum”.

As we have covered in previous posts, financial firms are eager to embrace the use of social networks, and these guidelines will help those firms to ensure that investors are protected from false or misleading claims and representations, and that firms are able to effectively and appropriately supervise the use of such new media by their employees. FSA guidelines on social media covered here.

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