Expect more rules on social media use from the Massachusetts Securities Division. The regulator said it plans to issue regulatory guidance on the use of social media for business purposes by investment advisory firms after surveying them about it.
The results of the survey showed 44 percent of investment advisers use social media for business purposes and 10 percent of those who don't plan to start using it within 12 months. The survey also showed that many investment advisers who use social media don't have proper policies and procedures in place. As a result, the regulator "believes that additional regulatory guidance concerning the use of social media would be appropriate." It also plans to create a "Working Group" to develop social media compliance guidelines for investment advisors.
Current regulations require investment advisors who use social media to have policies for employee supervision and record retention of content posted online through social media sites.