On January 4, 2012 the SEC’s Office of Compliance Inspections and Examinations issued an exam alert to registered investment advisers which included guidance on the use of social media. The alert is not meant to be a comprehensive summary of all compliance matters related to the use of social media, but rather is intended to cover measures that may assist advisers in developing procedures to prevent violations of the Advisers Act and other federal securities law with respect to the use of social media such as the antifraud, compliance and record keeping provisions.

The alert consists of staff observations in three categories: third-party content, record keeping and compliance programs. The staff is careful to note that the factors and suggestions set forth in the alert are not exhaustive and do not constitute a safe harbor.