Social media privacy laws worry financial industry

04/22/2013 | Wall Street Journal, The

The Financial Industry Regulatory Authority is talking with legislators in 10 states in an attempt to negotiate a carve-out for the financial industry in new social media laws being written that would prevent employers from looking at the accounts of employees. One such law in California, passed despite FINRA objections, could present companies with a conflict between their FINRA obligations and state law. David Bellaire, FSI's general counsel, said state laws and pending legislation could place "investors at risk, as well as creating a significant headache for brokerage firms." According to FSI, most financial firms use specialized software to monitor their employees' social media use.

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