Social Media And The SEC: Investment Advisers Beware

Law360, New York (January 19, 2012, 12:22 PM EST) -- The U.S. Securities and Exchange Commission has charged an investment adviser with offering to sell $500 billion of fictitious securities on LinkedIn.

The adviser, who was charged on Jan. 4, now faces an administrative proceeding before the SEC and may be ordered to pay a civil penalty and/or disgorgement. Indeed, in the immediate wake of its order bringing these proceedings, the SEC issued its first ever alert regarding the use of social media by investment advisers.

Investment advisers who utilize social media to communicate with clients and potential clients must be mindful of the applicable standards governing those communications.

SEC Enforcement...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Related Sections

Law Firms

Companies

Government Agencies

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!