SEC urges investors to only rely on RIAs

• Cautions on those providing investment advice on social media platforms
• Says all licensed RIAs listed on SEC website 

While cautioning on a recent phenomenon where investment advice is dispensed on social media platforms by individuals and various other outfits, the market regulator, the Securities and Exchange Commission (SEC), urges investors to obtain investment advice only from the licensed Registered Investment Advisors (RIAs), who are listed on the official SEC website. 

“Investors are encouraged to verify the status and credibility of individuals and companies offering via social media websites,” the SEC advised investors in a recent Twitter message. 

Amid the recent uptick in trading activities, particularly by local retail investors, individuals and companies offering investment tips on social media platforms such as Twitter, YouTube and Facebook, have mushroomed and some don’t have the best interest of the parties they advise.  

In addition, there has been increased activity in online forums, where certain parties were seen attempting to influence investors.