Top Social Media Enforcement Issues in the Securities Industry


Broker-dealers and investment advisers are finding access to client through social networks and providing new marketing opportunities. But they also pose the challenge of making it harder for the firms to supervise, review, maintain, and protect the information. The Securities and Exchange Commission and FINRA are struggling to keep the regulatory requirements up to date and protective as the social networks change rapidly.

In their article, “The Social Network Unhinged: #TopSocialMediaEnforcementIssuesintheSecuritiesIndustry,” which appeared in the June 2013 issue of Banking & Financial Services Policy Report, Sutherland attorneys Brian L. Rubin and Caroline A.Crenshaw review recent social media enforcement actions brought by the SEC and FINRA and discuss challenges facing the securities industry as it continues on the Internet.

The authors track the evolution from the early days of email to today.  They also dive into cyber-security.