California's Gov. Brown signs privacy law opposed by financial industry

California's Gov. Brown signs privacy law opposed by financial industry
SEP 23, 2012
By  DJAMIESON
California Gov. Jerry Brown on Thursday signed social-media-privacy legislation the financial services industry argues will impede oversight of social-media use by advisers. The law, which goes into effect next year, prohibits employers from requiring that employees or job applicants provide passwords to personal social-media sites. “The Golden State is pioneering the social media revolution and these laws will protect all Californians from unwarranted invasions of their personal social-media accounts,” Mr. Brown said in a signing statement. The Securities Industry and Financial Markets Association had asked Mr. Brown to veto the legislation. “We believe the bill, while well-intended, conflicted with the duty of securities firms to supervise, record, and maintain business-related communications as required by federal, state and other self-regulatory organizations,” SIFMA spokesman Andrew DeSouza wrote in an e-mail. The Financial Industry Regulatory Authority Inc. also opposed the legislation. The concern is that, even though firms can prohibit advisers from using personal sites for business purposes, there's no way they can be sure a representative or adviser is complying. Other industry groups, however, supported the legislation, seeing it as a shield from claims that they have a duty to monitor what employees say on social media sites. Mr. Brown's signing is sure to add momentum to a nationwide trend to protect employee privacy. A similar law in Maryland goes into effect next month and legislation in Illinois becomes active Jan. 1. In addition, other states are working on social-media-privacy bills, and a proposed federal law, the Password Protection Act of 2012, would make it illegal for an employer to compel or coerce access to any private online information, according to its sponsors.

Latest News

Investing for accountability: How to frame a values-driven conversation with clients
Investing for accountability: How to frame a values-driven conversation with clients

By listening for what truly matters and where clients want to make a difference, advisors can avoid politics and help build more personal strategies.

Advisor moves: Raymond James ends week with $1B Commonwealth recruitment streak
Advisor moves: Raymond James ends week with $1B Commonwealth recruitment streak

JPMorgan and RBC have also welcomed ex-UBS advisors in Texas, while Steward Partners and SpirePoint make new additions in the Sun Belt.

Cook Lawyer says fraud claims are Trump’s ‘weapon of choice’
Cook Lawyer says fraud claims are Trump’s ‘weapon of choice’

Counsel representing Lisa Cook argued the president's pattern of publicly blasting the Fed calls the foundation for her firing into question.

SEC orders Vanguard, Empower to pay more than $25M over failures linked to advisor compensation
SEC orders Vanguard, Empower to pay more than $25M over failures linked to advisor compensation

The two firms violated the Advisers Act and Reg BI by making misleading statements and failing to disclose conflicts to retail and retirement plan investors, according to the regulator.

RIA moves: Wells Fargo pair joins &Partners in Virginia
RIA moves: Wells Fargo pair joins &Partners in Virginia

Elsewhere, two breakaway teams from Morgan Stanley and Merrill unite to form a $2 billion RIA, while a Texas-based independent merges with a Bay Area advisory practice.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.