Got A Hot Tip On Twitter? FINRA Kindly Asks That You Retain That Message
The wild west days of social networking as a platform for stock tips and under the radar information exchange may be coming to an end. Or at least FINRA is finally realizing that there is more to stock manipulation than meets the eye, and in a radical change in policy (which up to now had been non-existent on the matter), FINRA will start policing and pouring through tweets, after announcing that "securities firms must keep copies of all business-related communications on social networks, whether those communications are official or from associated persons." Yet indicating just how woefully behind the times the SEC's much-feebler cousin is, FINRA has admitted that "the technology to grab those messages might not exist." The reason why FINRA should be concerned, as Securities Industry News highlights is that "Every Wall Street company – except possibly the smallest ones – have employees using social networks, creating potential liability problems for their employers, for whom they might not be speaking. However, many firms are also actively using these new platforms themselves, to reach out to customers, the general public, and potential new recruits." A name all too familiar that may soon fall in the crosshairs is none other than MBS seller extraordinaire, PIMCO: PIMCO, which operates more than 130 funds and has $1 trillion under management, uses its Facebook page to showcase blog posts by company executives on such topics as emerging markets interest rates predictions and rising unemployment rates
Monday, February 1, 2010
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