The SEC is planning to revamp regulations on how investment advisors advertise their services and pay solicitors for recommendations, according to news reports.

The regulator’s Investment Management unit will announce proposed amendments Tuesday, FA-IQ sister publication Ignites writes.

The current rules date back to 1961, and industry experts say those regulations have failed to keep pace with changes in communications, according to the publication. Most of the rules were written before the Internet came into being, while many don’t take into account the advent of social media, says Karen Barr, president and CEO of the Investment Adviser Association, according to Ignites.

“The way the SEC interprets that is very broad, so it raises questions of whether you can use the ’like’ button on Facebook, or receive endorsements on LinkedIn,” Barr says, according to the publication.

Changing the rule to reflect the current use of networking and social media would be a “big win for the industry,” Amy Lynch, founder and president of FrontLine Compliance, says, according to Ignites.

The regulator will also address disclosure requirements concerning how advisors pay to get client recommendations, the publication writes.

Karen Barr

That could lead to the SEC putting in rules for cash-free arrangements, such as reciprocal arrangements, according to Ignites. But it could also end up easing current rules, Terrence Davis, a shareholder at law firm Greenberg Traurig, tells the publication.

The IAA is urging the SEC to come up with regulations that are “high-level and flexible enough to adapt over time so the SEC won’t run into this problem again as technology and practices change,” Barr says, according to Ignites.