SEC says funds need not report all social media postings
Mutual funds regulators are suffering from Twitter overload.
Many funds companies, which are required to file advertising and promotional materials for regulatory review, have also been sending over all of their posts on Facebook, Twitter and other social media networks.
But on Friday, the Securities and Exchange Commission moved to end the deluge, issuing guidelines that almost all social media posts did not need to be filed with Financial Industry Regulatory Authority, which conducts the reviews.
Only posts specifically making claims about fund performance or pitching a fund's investment merits should be filed for review, the agency said.
For example, a tweet simply announcing that a new fund was launched, marking a portfolio manager change or making other factual statements need not be filed, the SEC said.
However, a tweet which said "fund performance rebounded strongly during the third quarter of 2012" or "Looking for dividends? Think global and consider our new Global Equity Fund," were the types of communications that should be filed for review.
(Reporting by Aaron Pressman; Editing by Phil Berlowitz)