Corporate Tweets and the SEC: Sometimes It’s Better To Keep Your Mouth Shut

Last year, I covered the landmark SEC decision to recognize corporate blogs and potentially other forms of Social Media as a recognized form of meeting public disclosure requirements under Regulation FD (Fair Disclosure) – in some cases. It was a significant validation of a widely recognized medium for sharing information between publicly-traded companies and stakeholders. Jonathan Schwartz, CEO of Sun, among many others, successfully lobbied over the years for official recognition of blogs and the SEC finally took notice. In reality, social media is reshaping disclosure and the practice of investor relations. As the social web begets a human voice and genuine transparency, it also raises the risks of meeting and maintaining legal compliance. It’s true, the SEC has recently modified its stance on blogs, but as new social tools continue to innovate and gain traction, a gap may be widening between the ability for companies as well as the SEC to keep pace with a rapidly evolving landscape of social networks and the means to meet investor demand and simply keep up with all of the emerging opportunities for engagement and communication.