Updated Saturday, September 5, 2015 as of 10:17 AM ET

Serious Concern, Optimism Follow New SEC Social Media Rules

Planner Winnie Sun isn’t afraid of social media. For the past decade, she’s used it to build her firm, Sun Group Wealth Partners of Irvine, Calif.

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Comments (3)
I think this article is missing the point. The positive and negative reviews will now begin to be made on Yelp and Brightscope and others whether the advisor is linking to those sites or not. Yelp and Brightscope are in the business of creating content and they understand our industry so now they know they can encourage reviews. Consumers will find their sites and post what they feel. Advisors should manage their online brand as best they can just like any other business, and be rewarded when that brand appears favorable in the marketplace. www.psgplanning.com
Posted by Brian K | Friday, April 04 2014 at 3:11PM ET
Personally I think it's a step in the right direction as it champions transparency in this space. This industry is no different than any other when it comes to those that offer good service and those that offer bad service. Without a way to evaluate or provide feedback on third-party sites, how is one to tell the difference, especially if they do not have a current relationship with someone that is working with an advisor? I like Yelp and use it often to make decisions on where to eat or visit, and I do take each review either good or bad with a grain of salt. However, if all review are bad, then I avoid the place altogether.

Sadly, as was noted by Richard Ketchum at the SIMFA C&L Annual Seminar this past week, people spend more time vetting out a restaurant on Yelp than doing the research necessary to find a good advisor. Perhaps this will help investors find a better fit.

Victor Gaxiola
Posted by victor g | Friday, April 04 2014 at 3:22PM ET
I agree with both posters. There will be reviews regardless of whether the advisor can manage them or not. It is true, there will be negative comments and reviews posted by people, some of whom are not even clients. Not unlike restaurants, the consumers who use services like Yelp learn to separate the wheat from the chaff, so I am not concerned for the reputation of a good advisor.

Overall, I find this to be promising news. As Victor mentioned, people spend more time vetting restaurants than advisors and I believe this ruling will begin to assist in the research process, and set the stage for better tools to assist younger investors who will rely more on digital than a personal referral when choosing their trusted advisor.

MC Colloquy.Biz
Posted by Mark C | Friday, April 04 2014 at 4:11PM ET
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