Comments on: Advertising Limitations for Investment Advisers on Social Networking Sites http://www.compliancebuilding.com/2009/05/05/advertising-limitations-for-investment-advisers-on-social-networking-sites/ Doug Cornelius on compliance and business ethics for private equity real estate Mon, 13 Feb 2012 12:56:20 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Long-Only Model Portfolio Data as of May 31, 2011 | Ascendere Associates LLC http://www.compliancebuilding.com/2009/05/05/advertising-limitations-for-investment-advisers-on-social-networking-sites/comment-page-1/#comment-17228 Long-Only Model Portfolio Data as of May 31, 2011 | Ascendere Associates LLC Wed, 01 Jun 2011 16:27:00 +0000 http://www.compliancebuilding.com/?p=2698#comment-17228 [...] with Rule 206(4)-1 – Advertisements by Investment Advisers.  We found this post “Advertising Limitations for Investment Advisers on Social Networking Sites” from a compliance blog particularly interesting.  We would welcome hearing opinions from [...] [...] with Rule 206(4)-1 – Advertisements by Investment Advisers.  We found this post “Advertising Limitations for Investment Advisers on Social Networking Sites” from a compliance blog particularly interesting.  We would welcome hearing opinions from [...]

]]> By: Doug Cornelius http://www.compliancebuilding.com/2009/05/05/advertising-limitations-for-investment-advisers-on-social-networking-sites/comment-page-1/#comment-5113 Doug Cornelius Mon, 15 Mar 2010 17:04:59 +0000 http://www.compliancebuilding.com/?p=2698#comment-5113 The difference with those sites is that you can't control them and you don't sponsor them. That's different than sites you control and that are effectively part of your marketing. I'm not sure what to do if someone posts something that is obviously untrue or that would be a problem if posted on a site that you do control. I look to a newspaper analogy for guidance. You can't control what the newspaper says about you. The article could be wrong and violate the law if you had put it in a press release. If you talk to a reporter, you need to address the compliance issues. If you write a letter to the editor in response, you need to deal with the compliance issues. But you can't prevent a third party from saying something about you. A word of caution would be to not encourage recommendations and certainly don't post anything in those review sites unless you treat it like the rest of your promotional materials, including the compliance and approval procedures. At least that is my take. You should check with your lawyer and compliance people for their take on your particular situation. The difference with those sites is that you can’t control them and you don’t sponsor them. That’s different than sites you control and that are effectively part of your marketing.

I’m not sure what to do if someone posts something that is obviously untrue or that would be a problem if posted on a site that you do control. I look to a newspaper analogy for guidance. You can’t control what the newspaper says about you. The article could be wrong and violate the law if you had put it in a press release. If you talk to a reporter, you need to address the compliance issues. If you write a letter to the editor in response, you need to deal with the compliance issues. But you can’t prevent a third party from saying something about you.

A word of caution would be to not encourage recommendations and certainly don’t post anything in those review sites unless you treat it like the rest of your promotional materials, including the compliance and approval procedures.

At least that is my take. You should check with your lawyer and compliance people for their take on your particular situation.

]]> By: Ben Gurwitz http://www.compliancebuilding.com/2009/05/05/advertising-limitations-for-investment-advisers-on-social-networking-sites/comment-page-1/#comment-5109 Ben Gurwitz Mon, 15 Mar 2010 16:11:47 +0000 http://www.compliancebuilding.com/?p=2698#comment-5109 I have read quite a bit about social networking and specifically Linked In recommendations. I was curious what your thoughts were on something like Yahoo, Google, or Angie's list reviews in relation to 206(4). I have read quite a bit about social networking and specifically Linked In recommendations. I was curious what your thoughts were on something like Yahoo, Google, or Angie’s list reviews in relation to 206(4).

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