Facebook faces regulatory scrutiny over float-reports

US regulators may review Facebook's disclosure process prior to last week's float, after claims some investors got favourable access to new information.

Reuters and the Wall Street Journal reported Facebook's advisers may have revised their financial forecasts for the social networking company, but only selected investors were told. The SEC and regulatory body FINRA both said they would look into the matter. Mary Schapiro, chairman of the Securities and Exchange Commission, said "there are issues that we need to look at". Richard Ketchum, chief executive of the Financial Industry Regulatory Authority (FINRA), added there were "matters of regulatory concern". However, Morgan Stanley, lead underwriter on the flotation, said it was...