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Memo to Securities Industry: Get Social

Social media is pretty much taking over the world, but the securities industry is still scared to death of it. The problem: The SEC and FINRA oversee all industry communication with the public very strictly, so it can be difficult to know how to monitor and regulate the huge volumes of new digital content like Tweets or Facebook FB -0.31%“likes”—which also often emanate from employees’ personal social-media accounts, making this content even more difficult to track. The upshot is that many firms simply prohibit their employees from using any form of social media at all. I think this is an over-reaction, and a bad idea.

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