SEC Risk Alert Discusses When Social Media Interactions May Constitute Prohibited Hedge Fund Client Testimonials
On January 4, 2012, the Office of Compliance Inspections and Examinations (OCIE) of the Securities and Exchange Commission (SEC) released a National Examination Risk Alert on Investment Adviser Use of Social Media (Risk Alert). The Risk Alert addresses the use by registered investment advisory firms of social media that integrate technology, social interaction and content creation – from blogs, wikis and photo sharing sites, to LinkedIn, YouTube, Facebook and other similar websites.