NBA Fines Mark Cuban $25,000 for Twitter Comments; Will the SEC be Next?

So I woke up early in the hospital room Monday morning and turned on the TV.  What do I see rolling by in the bottom scroll bar?

Apparently over the weekend, Dallas Mavericks owner Mark Cuban was fined $25,000 by the NBA for comments he posted on Twitter (from USNews.com).

Can the SEC be far behind by issuing fines to registered advisers using Twitter for failing to comply with regulatory law on the publishing of advertisements?  I posted a few weeks ago about my concern of advisers using LinkedIn’s Recommendations feature when it may violate rules against testimonials.

Now that some precedent has been set, albeit by a completely different body (i.e. the NBA), I suspect that the SEC might not be too far behind in stepping up its enforcement efforts by following the tweets of registered advisers.

My advice to registered advisers: Tweet with extreme caution.

Want to Know More?

Andy Gluck at Advisor Products, Inc. is hosting a webinar this Friday, April 3 featuring Brian Hamburger of Market Counsel to address the compliance issues of using social networking technology, including LinkedIn, Twitter, FaceBook and others.

If you’re interested in learning more about this subject, I highly recommend you register now!  This session has the potential to reach the maximum number of participants allowed.

Register for Friday’s Compliance Issues Posed By Linkedin, Twitter, Blogging, & Social Networking at Advisor Products, Inc.