SEC Clarifies Stance on Social Media, Takes Action to Punish Social Network-Based Fraud

http://ow.ly/8om62

An article by Tim Walker posted on the socialware.com blog.

This article discusses the Securities and Exchange Commission's stance regarding the use of social media, and clarifies their regulations in regard to communications posted on social media networks.

The article discusses recent SEC alerts regarding social media use, and also a recent action brought against an individual for posts made on LinkedIn.

The article states, "There are two lessons to take away from this:

1. The SEC has made social media a priority. After yesterday’s news, it’s clearer than ever that 100% of firms should prepare for social media audits by having strong social media policies and social media archiving in place.
2. There’s no need to be scared of social media.Fraud is still fraud. While the social networks do present many new challenges for advisors and compliance officers, when it comes to shady activities, only the mediums—not the underlying rules—have changed."