In recognition of the pervasive use of social media, the SEC recently issued guidance that public companies could disseminate material information through social media without violating Regulation FD. The question remains what is the best way to use social media in this fashion.
The critical aspect of complying with Regulation FD is to make sure that the public knows that you social media channel of choice is a “recognized channel of distribution”. The public must be provided appropriate notice of the channels that the company will use to distribute this information.
In other words, an executive disclosing information on his/her personal social media site without advance notice to the public would not be in conformity with this guidance. Personal social media is not seen as a source of information through which a company would report.
Feel free to use social media to distribute information. But be certain that the public knows you will use social media before you do so. If you need help on this issue, let me know.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.