The SEC said it has published a guidance update to clarify theobligations of mutual funds and other investment companies to seekreview of materials posted on their social media sites.
|The IM Guidance Update, which comes from the SEC's Division ofInvestment Management, provides real-life examples of the kinds ofcommunications that the agency believes would and would not besubject to a requirement to file with the Financial IndustryRegulatory Authority, the SEC said.
|According to the SEC, whether a FINRA review of materials isneeded prior to an investment company posting on its social media sites depends on content, context, thepresentation of the particular communication or set ofcommunications, and if it requires an examination of the underlyingsubstantive information transmitted to the social media user andconsideration of any other facts and circumstances.
|This may include whether the interactive communication is merelya response to a request or inquiry from the social media user or ifhe or she is forwarding previously-filed content, according to theSEC.
|The SEC said it has learned that out of an abundance of caution,many mutual funds and other investment companies may file materialson their social media sites with FINRA unnecessarily.
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