Proposed U.S. Law Would Allow Easier Online Communication
FINANCIAL PRIVACY—AUSTRALIA & U.S.January 20, 2012
While the Australian Securities and Investments Commission (ASIC) cautions financial services professionals to be conscientious online, a proposed change to U.S. compliance rules would make it easier for financial advisors to use social media in business, reports Financial Standard. If the change is approved, U.S. financial planners would not have to file "retail communications that are posted on online interactive electronic forums," says the U.S. Financial Industry Regulatory Authority. "In practical terms," the report states, "social media forums...could potentially be a free space for advisers to communicate with clients and non-clients without fear of a compliance nightmare." An ASIC spokesperson told Financial Standard the commission uses the Internet to vigilantly monitor "the many conversations that are happening in the market to ensure fair market trading practices."