Why We Care

Social Media Fines in the headlines – where SMC policy analysis, training and processes helps firms stay safe

  1. Employees intentionally misusing social media for Fraud and manipulation – i.e. Tom Hayes, causing Citibank a $1.1bn fine for Citi manipulating LIBOR (Citi admitted to not having the correct processes and procedures in place)
  2. Employees unintentionally making a mistake on social media that led to significant financial loss or regulatory penalty
    1. FCA miscommunicating an inquiry into closed books of business to The Daily Telegraph – wiping £2.4bn off the market:  http://www.telegraph.co.uk/finance/personalfinance/insurance/10730789/Insurance-shares-hit-by-FCA-review.html
    2. Netflix and its CEO both received Wells Notice’s from the SEC for communicating information about the 1bn viewing hours reached to their Facebook community before informing the market
    3. The CFO of twitter who knocked the company’s share price 17% by accidentally putting a text/email on his twitter feed http://blogs.wsj.com/marketbeat/2012/12/06/netflix-gets-wells-notice-over-ceo-hastings-facebook-post/)
  3. Employees using static (LinkedIn) as well and interactive (Bloomberg chat) social media without a monitoring Registered Representative – i.e. $25m fine (January 28th, 2014) for Jefferies employee