SEC Releases Alert, Notifying Advisers of the Risks of Texting and Using Social Media with Clients

Posted on January 10th, 2019 at 5:12 PM
SEC Releases Alert, Notifying Advisers of the Risks of Texting and Using Social Media with Clients

From the Desk of Jim Eccleston at Eccleston Law LLC:

In response to an uptick in the amount of text messaging, personal email and social media use in the industry, the SEC recently released a risk alert, notifying advisers that it is paying closer attention to the risks involved with those types of communications.

In addition to conducting a survey to gauge whether advisers are following the required policies when engaging with clients, the SEC recommended certain procedures for firms to follow regarding their advisers’ use of text messages and social media with clients.

These SEC recommendations include the following: prohibiting the use of specific apps and other technologies that readily can be misused; requiring in-firm procedures that the employee move those messages to another electronic system which the adviser determines can be used in compliance with its books and records obligations; and requiring personnel to complete training on the firm’s policies and procedures.

The SEC announced also that it has named a deputy director to oversee issues involving advisers use of text messages and social media with clients.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, sec, alerts, social media, texting

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