The financial community has been slow to adopt social media. One big fuzzy gray zone has been compliance.
But that process is evolving. Last week, a National Examination Risk Alert went out that called into question the Facebook ‘Like’ button.
Testimonials: …The term “testimonial” is not defined in Rule 206(4)-1(a)(1), but SEC staff consistently interprets that term to include a statement of a client’s experience with, or endorsement of, an investment adviser. Therefore, the staff believes that, depending on the facts and circumstances, the use of “social plug-ins” such as the “like” button could be a testimonial under the Advisers Act.16…
Steph and I discuss this issue (and a lot more) on our AdvisorGo Podcast this week. Go to AdvisorGo to listen/subscribe via email or listen below:
