• SEC Issues New Guidance for Investment Advisers Regarding Use of Social Media Testimonials
  • May 29, 2014 | Author: Anastasia T. Rockas
  • Law Firm: Skadden, Arps, Slate, Meagher & Flom LLP - New York Office
  • On March 31, 2014, the Division of Investment Management (the “Division”) of the Securities and Exchange Commission (the “SEC”) issued long-awaited guidance regarding investment advisers’ use of public commentaries on social media and their own websites. Recognizing the increased use of social media and the Internet to research and diligence service providers, the Division seeks to help advisers apply Section 206(4) of the Investment Advisers Act of 1940 (as amended, the “Advisers Act”) and Rule 206(4)-1(a)(1) thereunder (the “testimonial rule”) to their use of social media testimonials from independent third parties.