Filing Requirements for Certain Electronic Communications

Social media channels are an effective and interactive medium for sales professionals in all industries to communicate with their customers. Recently, securities brokers have been increasing their social media usage as a tool to directly interact with their clients due to its accessibility and wide outreach. The SEC and FINRA, seeing this trend among broker-dealers and other securities professionals, are racing to develop guidelines so broker-dealers can use this tool in a compliant manner.

Jon-Jorge Aras, Partner at Warren Law Group, is optimistic about social media in the securities industry: “The SEC and FINRA implement mandates to protect the public and social media, being a virtual town square, is the most public-facing form of marketing available right now. This landscape presents a great opportunity to facilitate good business as well as a potential vehicle for securities fraud, so both investors and brokers need to be cautious as to what they post and consume.”

If you are a broker and have any questions regarding FINRA social media marketing regulations, or you are an investor looking to verify information on an investment opportunity solicited online, contact the attorneys at Warren Law Group at (866) WLGROUP or email info@warren.law for a complimentary assessment.

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Warren Law Group

WLG provides legal representation to financial services professionals and business owners in regulatory and compliance matters, litigation, and securities.