Many financial firms and investment managers want to advertise with social media but are confused about the regulations governing advertising for investment products and services – especially rules for social media. On July 10, 2018, the Securities and Exchange Commission (SEC) reiterated their view that the Advertising Rule 206(4)-1 applies to social media with settlements against five firms for using testimonials to promote their firms or investment products.
Do you want to use social media to disseminate information about your firm or ideas, but you are unclear about the SEC’s rules for using social media to disseminate investment information? Is this lack of clarity preventing you from using social media to disseminate information?
If so, you are reducing your firm’s opportunities for developing credibility and authority with investors. There are four basic rules that can prevent violations of SEC rules.
Updated on August 15, 2018 to reflect Elon Musk's use of a blog page on the Tesla website to publish his explanation for sending out the August 7th tweets regarding his plan to take Tesla private.
Social media managers for corporations and investment organizations just received an important lesson from Elon Musk. On August 7, 2018, Musk sent out the following series of tweets to announce that he was planning to take Tesla private at $420 a share. This was significantly above the $341 a share trading level on the day before the announcement.