SEC Social Media Guidelines Still Unclear For Investor Relations
ACCORDING TO KCSA STRATEGIC COMMUNICATIONS' SURVEY, LEADING INVESTOR RELATIONS
PROFESSIONALS DO NOT THINK THE SEC HAS GIVEN SUFFICIENT AND CLEAR GUIDELINES
ON USE OF SOCIAL MEDIA FOR DISCLOSURE
NEW YORK, April 4, 2013
NEW YORK, April 4, 2013 /PRNewswire/ --Tuesday, the SEC issued a statement
that social media is an acceptable means for accomplishing disclosure of
material information by public companies. Even after this development, the
vast majority (77 percent) of CFOs and investor relations professionals at
major public companies do not think the SEC has given enough guidance on how
to use social media to disclose company information – this is according to a
new survey conducted by KCSA Strategic Communications, a leading integrated
communications firm specializing in financial public relations, investor
relations, social media and creative marketing services.
(Logo: http://photos.prnewswire.com/prnh/20120517/NY09396LOGO )
The survey was conducted immediately following the SEC's announcement. The
SEC's determination was in response to its allegation that Netflix's CEO, Reed
Hastings, had inappropriately revealed what may have been material company
information via Facebook in December 2012. Hastings' Facebook post sparked an
SEC probe and prompted questioning on how public companies can use social
media in order to comply with Regulation Fair Disclosure (Reg FD).
Following the Netflix incident, KCSA's CEO Jeff Corbin wrote a letter to the
SEC proposing a series of Reg FD updates to include social media channels.
KCSA's survey involved in-depth interviews with leading heads of investor
relations at more than 25 public companies in a wide range of industries.
KCSA sought to discover their take on the SEC's statement, how this may or may
not impact public companies' future communications and how they believe
companies can best leverage social media.
According to the results of the survey:
o69 percent of companies would like to be able to use social media to
disclose company information.
o38 percent are currently using social media as part of investor relations.
oOf the respondents, over half (56 percent) use Twitter, 22 percent use
LinkedIn and 11 percent use Facebook. 11 percent also utilize other social
media sites such as blogs, Slideshare and StockTwits.
oWhile 62 percent of companies are not currently using social media to
disseminate material information, 86 percent would be willing to
incorporate social media into their investor relations strategies if the
SEC provided clearer guidance.
According to Jeff Corbin, chief executive officer of KCSA, "Social media has
become a basic part of the communications fabric of investors and companies.
Consumers have become accustomed to engaging in conversations with the
companies they follow via Twitter, Facebook and LinkedIn. The SEC's statement
Tuesday makes complete sense and demonstrates the regulatory body's
willingness to accept and welcome the 21^st Century ways of doing things.
Social media is here to stay, and public companies should embrace this
communications medium as a vital and viable way to accomplish disclosure."
For more information about KCSA Strategic Communications or the survey, visit
us at www.kcsa.com or contact Sharron Silvers, firstname.lastname@example.org, or Samantha
About KCSA Strategic Communications
KCSA is a fully-integrated communications agency specializing in public
relations, investor relations and marketing with expertise in financial and
professional services, technology, healthcare, media, energy and public
services companies. Since 1969, the firm has demonstrated strategic thinking
and program execution that drives results for its clients in the ever-changing
communications and digital landscape. The firm's clients are its best
references. For more information, please visit www.kcsa.com.
CONTACTS: Sharron Silvers / Samantha Wolf
KCSA Strategic Communications
212-896-1282 / 212-896-1220
email@example.com / firstname.lastname@example.org
SOURCE KCSA Strategic Communications
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