Thanks to one of the tiny handful of required new rules the SEC has gotten around to writing, hedge fund and private equity managers can speak their minds without running afoul of anti-advertising rules. And, this being 2015, speaking their minds means Tweeting and LinkedIning and the like.
Now, the SEC may have to let alts. managers do that kind of thing right now. But it doesn’t have to like it. And so, it’s taking time out of its busy schedule bickering and not agreeing on other rules to write yet another rule to make it a pain in the ass for hedge fund and private equity managers to use social media.
The SEC already scrutinizes the web sites of investment funds to make certain the information provided on the sites matches up with the actual products and services being offered. The new regulations would extend that same scrutiny to investment funds’ footprints on social media sites.
“Along with websites, advisers increasingly utilize social media to communicate and it would be useful for this information to be available to us and the general public,” the SEC’s proposal reads. “Our staff could use this information to help prepare for examinations of investment advisers and compare information that advisers disseminate across different social media platforms as well as identifying and monitoring new platforms.”
SEC Eyes Hedge Funds on Social Media [Fox Business]