Chat sites : ASIC’s message is buyer beware
ASIC have decided to take a hands off approach in regard to the regulation of stock market related internet chat sites. ASIC was considering the licensing of website operators and the requirement that users identify themselves before posting comments.
As reported in today’s Australian Financial Review, ASIC will rely upon website owners and the public to stamp out the manipulation of share prices via chat sites. While this may appear inadequate, chat site users can be traced via their internet service providers (ISP’s) who will have identification such as credit card details.
The message for chat site users is to be aware of the potential for comments which are designed to ramp up share prices without justification.