FINRA Seeks Access to Facebook Accounts Under Regulation FD l Securities Lawyer 101

Regulation FD - Securities Lawyer 101

Securities Lawyer 101 Blog

On April 2, 2013, the SEC released a report on the use of social media by public companies, in which it clarified that public companies may use social media such as Twitter and Facebook to announce information in compliance with Regulation FD if they tell investors and shareholders ahead of time which social media they will use to disseminate that information.

The Financial Industry Regulatory Authority (FINRA), which regulates broker-dealers, has been concerned about the pervasive influence of the social media for some time. In 2011 it compiled a “Guide to the Web for Registered Representatives” that enumerated and explained compliance requirements for its members.

Now it’s gone a step further, insisting that brokers’ postings in social media such as Twitter and Facebook must be monitored to ensure that they comply with its rules. The regulator has sent letters to about 10 states in which existing or proposed legislation would prohibit such monitoring, asking that broker-dealers be exempt from those prohibitions.

FINRA has not provided information on whether it intends to monitor all or selected member accounts or about how the monitoring would be accomplished.

If brokers use social media to communicate about stocks, FINRA believes that as their regulator it should have access to those accounts.  Access, they say, is necessary to prevent abuses that could harm investors.

Registered reps should assume that if FINRA gets its way, the SEC will also have access to their Facebook and Twitter accounts. The concern of civil libertarians is that they might eventually be able to extend that access to family photos, private email, and much more.

For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit   This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship.  For more information about going public and the rules and regulations affecting the use of Rule 144, Form 8K, crowdfunding, FINRA Rule 6490, Rule 506 private placement offerings and memorandums, Regulation A, Rule 504 offerings, SEC reporting requirements, SEC registration statements on Form S-1 , IPO’s, OTC Pink Sheet listings, Form 10 OTCBB and OTC Markets disclosure requirements, DTC Chills, Global Locks, reverse mergers, public shells, and direct public offerings please contact Hamilton and Associates at (561) 416-8956 or [email protected].  Please note that the prior results discussed herein do not guarantee similar outcomes.

Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
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