Electronic Communications and Social Media: Firms that Tweet, Twitter and Facebook—Part I

June 2010


Today’s technologies are posing increased challenges to broker-dealers and investment
advisers alike. Although FINRA has provided some guidance in its Notice to Members
10-06 on social media websites, the SEC has provided little direction on its expectation
of their registrants. While the SEC, FINRA and other Self Regulatory Organizations
(SROs) generally define recordkeeping requirements and internal control procedures for
electronic communications, certain means of communications, such as text messaging
and social media sites, (including Twitter, LinkedIn and Facebook) present unique
supervisory and compliance challenges that firms now face. The use of such electronic
communications has proved valuable to many firms utilizing the new technology for
business growth. However, the challenge of monitoring such use and remaining
compliant with applicable regulatory requirements could potentially outweigh that added


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