RIA Compliance and Practice Management Blog

Social Media Compliance for Registered Investment Adviser Firms

Posted by RIA in a Box

Mar 12, 2014 7:09:00 PM

Social media can be a great advertising channel for registered investment adviser (RIA) firms to connect with current and prospective clients. However, it is important for investment advisory firms to remember that the SEC has certain compliance guidelines when it comes to RIA social media usage that fall under the general SEC advertising rules. As discussed in a recent blog post on the SEC's RIA National Exam Program for Never Before Examined RIA firms, when an investment advisory firm is marketing its services, regardless of the advertising channel being utilized (social media, print, etc.), it is vital that proper records are kept and that the marketing is not false, misleading, or deceptive in any way.

Kenneth Corbin of Financial Planning Magaize recently probed this hot RIA compliance topic in his article titled SEC Won't Rewrite Advisor Compliance Rules for Social MediaAs Corbin notes, although the current social media guidelines set forth by the SEC may be viewed by some as vague, according to remarks recently made by Melissa Gainor, senior counsel at the SEC's Investment Adviser Regulation Office, the SEC does not plan to completely rewrite the regulations to account for the growing use of social media. In general, the agency believes that many of the existing advertising and record-keeping RIA compliance requirements can be applied to investment adviser social media usage.

To read Kenneth Corbin's recent Financial Planning Magazine article in its entirety click here.

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Topics: RIA Compliance

RIA in a Box LLC is not a law firm, investment advisory firm, or CPA firm. RIA in a Box LLC does not provide legal advice or opinions to any party or client. You should always consult your relevant regulatory authorities or legal counsel if applicable.

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