Category: Social Media
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This article was first published by Drinker Biddle’s Investment Management Group and republished here for the benefit of our readers.
On March 28, 2014, the Securities and Exchange Commission (“SEC”), Division of Investment Management, issued guidance that clarifies when it is permissible for an investment adviser or an investment adviser representative (“IAR”) to publish public commentary (“testimonials”) about the investment adviser. In light of the widespread use of social media by consumers, the SEC issued guidance in the form of a Q&A that now generally permits an investment adviser to publish testimonials through social media, so long as such testimonials originally appear on independent, third-party social media sites, are unedited and the investment adviser or its IAR has no direct or indirect influence or control over the independent site or its contents.
Section 206(4) of the Investment Advisers Act of 1940 (“Advisers Act”) … Read More »