by Brad Friedman | Social Media
The Code of Professional Responsibility (Code) is clear when it comes to telling attorneys what they can and cannot do, especially in the areas of marketing and advertising, which consequently impacts the implementation of a social media marketing plan. Some lawyers, particularly solo practitioners, advertise on TV, radio, newspapers, or even on the back of phone directories. It is no surprise that many lawyers turn to social media as well to market their services. (more…)
by Brad Friedman | Social Media
Recently, the U.S. Securities and Exchange Commission (SEC) issued a guidance to help financial advisors determine when it is appropriate to use social media. The guidance helps to clarify Section 206(4)-1(a)(1) of the Investment Advisors Act of 1940. This section of the rule makes it unlawful to publish, circulate, or distribute any advertisement that refers, direct or indirectly, to any testimonial of any kind concerning the advisor or concerning any advice, analysis, report, or other service rendered by the advisor (i.e. the Testimonial Rule.) Even though the SEC has not specifically defined “testimonial,” they have interpreted it to mean “a statement of a client's experience with, or endorsement of, an investment advisor.” According to Institutional Asset Manager, whether public commentary on a social media site is a testimonial depends upon all of the facts and circumstances surrounding the particular situation. (more…)