David Beattie

01/02/2012 Author: David Beattie

Editor's view: 1 February 2012

It’s well known that our industry likes to be viewed as on-trend, an early adopter, and generally ahead of the curve, but when it comes to emerging technologies the reality is that it sometimes lags behind other high-profile industries.

Ultimately, those leading the hedge fund charge have several fundamental concerns to address – not just from investors, but also increasingly from regulators – so a slower approach is perhaps prudent. However, complacency must not be allowed to breed, and not being abreast of latest guidance on technology and social media developments is likely to curry little favour with regulators.

While it is highly unlikely that any fund would launch a Facebook page or post pictures from an off-site on Twitter, the responsibility for controlling anything business-related on social media outlets lies with the managers, and offers scant wiggle room.

This month the SEC issued a detailed ‘alert’ covering responsibilities and offering guidance on the issue. Citing the rapid uptake of social media by the financial services industry, it ‘encourages’ firms to adopt, and regularly review, the effectiveness of its policies and procedures.

For many in the industry, social media in the workplace may still be an alien concept – but it should be ignored at their peril as the lines between official and non-official communication continue to blur, and regulators pick up the pace. The warning shot has been fired and first blood could be painful. 

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