The SEC said it has published a guidance update to clarify the obligations of mutual funds and other investment companies to seek review of materials posted on their social media sites.

The IM Guidance Update, which comes from the SEC's Division of Investment Management, provides real-life examples of the kinds of communications that the agency believes would and would not be subject to a requirement to file with the Financial Industry Regulatory Authority, the SEC said.

According to the SEC, whether a FINRA review of materials is needed prior to an investment company posting on its social media sites depends on content, context, the presentation of the particular communication or set of communications, and if it requires an examination of the underlying substantive information transmitted to the social media user and consideration of any other facts and circumstances.

This may include whether the interactive communication is merely a response to a request or inquiry from the social media user or if he or she is forwarding previously-filed content, according to the SEC.

The SEC said it has learned that out of an abundance of caution, many mutual funds and other investment companies may file materials on their social media sites with FINRA unnecessarily.

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