Financial firms ask for exemptions on social media privacy laws

social mediaThe Financial Regulatory Authority, an independent regulatory body that aims to protect investors, is lobbying for special exemptions to new and pending state laws that prevent employers from accessing employee social media accounts.

The regulator is asking lawmakers in around 10 states to amend their legislations to allow financial companies to explore employee social media accounts when misuse is suspected.

According to sources, financial firms fear that brokers could use social media to disseminate information that would influence stocks. And, without monitoring allowances, such a misdemeanor would be left unchecked.

At least six states have passed legislation that prohibits employers from requiring employees or applicants to surrender their social media account information, which includes usernames and passwords. More than 30 other states are considering implementing similar social media legislations.

In California, the Securities Industry and Financial Markets Associations unsuccessfully appealed to California Governor Jerry Brown to veto the social media privacy law earlier this year.

Source: CNET



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