Social Media Legislation

SIFMA provides comments to the Maine Joint Standing Committee on Judiciary on pending social media legislation, LD 1194. This legislation would, among other things, prohibit employers from requiring that current employees provide employers with access to their personal social media accounts.

While LD 1194 is well-intentioned, it would, if enacted, conflict with the duty of broker-dealers to supervise, record, and maintain business-related communications as required by both the Financial Industry Regulatory Authority (FINRA) and by state law. FINRA is the largest independent regulator for all securities firms doing business in the United States and is considered a self-regulatory organization under federal securities laws. To protect investors, FINRA requires, among other things, that securities firms supervise, record and maintain their employees’ business communications – including those disseminated on social media sites.

SIFMA therefore requests that the Committee consider a narrow exemption to LD 1194 so that securities firms can continue to comply with state requirements and FINRA regulations.