FinTwit Set To Lose Some Of Its Most Prominent Voices Due To Loss Of Anonymity

Financial twitter is set to lose some of its more prominent "anonymous" voices in just a few days. The reason: in a decision that has passed largely under the radar, beginning in 2018, the SEC will require registered investment advisors - i.e. carbon-based asset managers, hedge funders and so on, to disclose any anonymous social media accounts, on their Form ADV.

This goes back to a recently filed amendment to Form ADV, i.e., the "Umbrella Registration" for asset managers, specifically Item 1.I. as described below by K&L Gates:

Recognizing the increasing use of social media by advisers, the SEC has also amended Item 1.I. to request information regarding the registrant’s accounts on publicly available social media platforms, such as Twitter, Facebook, and LinkedIn. Previously, Item 1.I. only asked for information about an adviser’s websites. Now, the registrant must provide, in addition to its website addresses, the addresses of each of its social media pages in Section 1.I. of Schedule D. However, a registrant should not provide the addresses of websites or accounts on publicly available social media platforms where the registrant does not the control the content, nor should it provide the website and social media addresses of its employees’ accounts, regardless of whether the registrant controls the content of such accounts.

While many prominent asset managers enjoy twitter's anonymity and hide behind a pseudonymous account, their true ids are usually familiar to those in the industry. Still, the forced disclosure requirement could open many of the more outspoken - if erudite - voices to litigation and generally unpleasant legal involvement with those who disagree with them, resulting in potential money management complication.

In an example of just that, moments ago one of the most popular "anonymous" accounts on twitter, that of a certain Wall Street Cynic, famous for his bearish persuasion since the days of Enron, has just announced his departure from twitter.

There were of course, some humorous takes on the topic...


aVileRat shitshitshit Fri, 12/29/2017 - 14:38 Permalink

If it were that simple, we would have been doing it for the past 2 years. The problem is related parties must also be disclosed, the law as it is framed to "protect markets" is basically a prototype for controlled opposition as it reads line for line like a free speech disclosure control which was adopted for Chinese social media in 2005.

Compliance departments are very leery about the blowback on firms, particularly for taking hard views which counter market or institutional trends. Everything is so beta correlated now, you get shit from all counterparties over publishing common market information on anon. or ZH which were kosher to publish back in 2008.



In reply to by shitshitshit

pigpen Fri, 12/29/2017 - 12:01 Permalink

Chanos you will be missed. For all of his followers, try brave browser as brave blocks advertising, malware and tracking by DEFAULT on any device and operating system.

He who controls browser controls the money.

Brave is going to destroy the goobook monopolies and they have crypto payment method to pay content providers.

Ring in the new year with new brave browser.



RedDwarf Fri, 12/29/2017 - 15:23 Permalink

More police state bullshit.  If the accounts are anonymous, then it's a break from their professional reputation.  None of their cache comes along.  So there is no reason logically for this SEC change, so it's about power and control, not proper regulation.

What is especially interesting is how the Deep State is now targeting the rich more than the middle class and poor.  If you have money, then you must OBEY.  You must be part of the ANIMAL FARM pigs or else.  Saudi Arabia, what Putin has done to certain billionaires, the qualified investor laws in the USA, various version of soft and hard laws both pro and anti rich.  No one practices egalitarianism even conceptually anymore.

In short, we are heading toward even more internecine conflict among the elites.  This is another reason the fourth turning will be coming to a close soon.  Fools who think they can control everything will lose everything.  The only question is how much blood is going to be shed in this Fourth Turning.