A Social Media Wake-Up Call For Broker-Dealers

Law360, New York (July 8, 2013, 12:07 PM EDT) -- Recently, the Financial Industry Regulatory Authority posted on its website a targeted examination letter entitled “Spot-Check of Social Media Communications." FINRA occasionally posts targeted examination letters to alert its members to specific focus areas. Such letters reveal that FINRA is conducting a “sweep” of certain nonidentified member organizations, either as a survey of membership practices with respect to specific issues, or to evaluate compliance with FINRA requirements.

The social media letter defines “social media” to include such things as Facebook, Twitter, LinkedIn and blogs. Given the...
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