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Abstract: 

The growing use of social media platforms has increased advisers’ ability to connect with clients and prospects but has also brought greater regulatory exposure and increased risks. The authors note the SEC’s risk alert, its IM Guidance, and recent amendment to Form ADV relating to adviser use of social media. They then discuss the SEC’s rules under the Advisers’ Act with regard to social media testimonials, protective measures, compliance programs, and required records.

Keywords: The Testimonial Rule; Social Media Compliance Program; Advisers Act Rule 204-2

Affiliations:  1: Faegre Baker Daniels; 2: FBD.