Social Media Advertising


“Social media” is an umbrella term that encompasses various activities that integrate technology, social interaction and content creation. Social media may use many technologies, including, but not limited to, blogs, microblogs, wikis, photos and video sharing, podcasts, social networking, and virtual worlds.

Use of Social Media

Firms’ use of social media must comply with various provisions of the federal securities laws, including, but not limited to, the antifraud provisions, compliance provisions, and recordkeeping provisions.

Compliance Responsibility

RIAs should consider reviewing their document retention policies to ensure that any required records generated by social media communications are retained in compliance with the federal securities laws, including in a manner that is easily accessible for a period not less than five years.

Factors to Consider

Usage guidelines

Content standards

Sufficient monitoring

Approval of content


Investment advisers using or permitting the use of social media by their representatives, solicitors and/or third parties should consider periodically evaluating the effectiveness of their compliance program as it relates to social media.

Review all advertisements, including website and performance advertising, for accuracy.

Attention should be paid to third party content (if permitted) and recordkeeping responsibilities.

Citations of Law

FEDERAL LAW—Advisers Act of 1940
Advertisements by Investment Advisers

STATE LAW—Utah Uniform Securities Act
Fraud Unlawful

Information has been provided by the SEC and NASAA. You will be subject to all relevant laws, regulations, rules, and orders whether or not they are included in this information sheet.