The SEC approved FINRA’s proposed rule change to adopt NASD Rules 2210 and 2211 and NASD Interpretive Materials 2210-1 and 2210-3 through 2210-8 as FINRA Rules 2210 and 2212 through 2216 (collectively, the Communications Rules), and to delete certain provisions of Incorporated NYSE Rule 472 and certain Supplementary Material and Rule Interpretations related to NYSE Rule 472. The Communications Rules become effective on February 4, 2013.
Specifically, the rule says, “any retail communication that does not make any financial or investment recommendation or otherwise promote a product or service of the member…” is exempt from supervision and or approval by a qualified principal.
This ruling applies to Financial Services Providers governed by the SEC and FINRA and appears to be very good news and likely to relieve some headaches and open social media networks to more providers. I’m certain there will be much more written about this in the months to come. For now, this is encouraging news indicating the SEC and FINRA are beginning to realize the power of social media and the benefits it has to those it governs.