Securities regulators want to overturn bans on monitoring employees’ social media accounts, the Wall Street Journal’s Jean Eaglesham and Michael Rothfeld report.
That would put them in line with the very entities they regulate, as the banking industry also opposes the measures.
At least four states have adopted privacy laws restricting employers from looking at what workers are Tweeting and posting to Facebook.
But last year, the Securities Industry and Financial Markets Association (SIFMA) challenged California’s law on grounds that it prevents brokerages from policing investment advice, Eaglesham and Rothfeld write.
Now FINRA is joining the chorus to allow access. From WSJ:
Securities regulators worry that the raft of new laws aimed at protecting employees’ privacy puts investors at risk. They say the fast spread of financial advice on social networks such as Facebook Inc. and Twitter Inc. could create new channels for Ponzi schemes and other frauds, and that fighting those frauds will be harder if state lawmakers snarl efforts by companies to monitor what employees are pitching to investors.
In 2009, a finance exec paid a $10,000 fine in connection with hyping a stock on Twitter, WSJ notes.
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