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SEC Says Social Media OK for Company Announcements if Investors Are Alerted
On Tuesday, April 2nd 2013, the Securities and Exchange Commission released a monumental ruling on public disclosure via social media outlets.
The decision was in regards to an SEC investigation into Netflix CEO Reed Hasting’s post on his personal Facebook page that declared Netflix had registered its 1 billionth hour viewed on its subscription stream service.
George Canellos, Acting Director of the SEC Division of Enforcement, states, “Most social media are perfectly suitable methods for communicating with investors, but not if the access is restricted or if investors don’t know that’s where they need to turn to get the latest news.”
The decision legitimizes the evolving channels of communication between a publicly traded company and the shareholders that purchase the stock. You can read the SEC Press Release regarding the ruling here. We congratulate the SEC for displaying their willingness to adapt to the rapidly changing communications industry and the implications that change has on the relationship between companies and investors.
The Techcrunch website produced a great article giving more details of the SEC ruling that can be accessed here.
The SEC ruling marks a potential watershed moment in the history of company-investor relations. At Securex, we are well equipped to help your company navigate the uncertainties of social media disclosure and SEC compliance. Please click here for more information regarding our Newswire service and how it can help your business expand its web profile.