Luthor

Half of advisory firms expect new SEC rules to push their annual compliance costs above $100,000. Meanwhile, 40% of solo RIA principals spend nearly half their time on compliance tasks instead of serving clients. And that math just doesn't work if you want to grow your business. The #SEC registered adviser sector hit 15,870 firms in 2024, managing $144.6 trillion in assets. But with new rules coming all the time, manual compliance is becoming impossible to manage. And 57% of wealth managers increased their tech budgets specifically for compliance solutions last year. Books and records violations showed up in 17% of state examinations. Registration deficiencies in 23%. These aren't intentional violations, but organizational failures that can easily be prevented with the right technology. We’ve seen that smart firms realize that #compliance technology ultimately is a huge opportunity that lets them save budgets, avoid fines and bad press and focus on actual revenue-generating activities. But what to choose? Here’s everything #RIAs need to know about compliance software selection: https://lnkd.in/gZbBh7aJ #RIACompliance #WealthManagement #ComplianceSoftware

57% of compliance officers say AI is their biggest concern right now, and based on what we're seeing in the market, that number could probably get even higher. The latest Investment Management Compliance Testing Survey puts #AI at the top of the #compliance hot list, followed by #AML (41%) and #cybersecurity (38%). But what really caught our attention: 44% of firms using AI tools have no formal testing or validation process, so nearly half the firms using AI aren't actually checking whether their AI systems are working correctly. With the SEC's new AI Task Force and increasing regulatory focus on AI governance, compliance gaps in this area could become very expensive, very quickly. The good news is that 46% of firms increased their AI compliance testing this year. The not-so-good news is that many firms are still playing catch-up with technology they've already deployed. At Luthor, we're in a unique position – we use AI to help with compliance, so we understand both the benefits and the risks. The key is having proper oversight of any AI system you implement, especially when it touches client-facing activities. https://lnkd.in/gefSTBdb #AIGovernance #ComplianceStrategy #RegulatoryRisk

CAN-SPAM violations can cost up to $53,088 per email. #GDPR fines have hit €5.6 billion total. The #CCPA just fined a company $632,500 for website opt-out failures. But most of these violations aren't from companies trying to break the rules, but from companies that just couldn't keep up with all the requirements manually. Missing opt-out mechanisms. Unclear privacy disclosures. Using personal data without proper consent. Forgetting to include physical addresses in emails. These are technical compliance failures, not intentional deception. Staying on top of all the requirements across email (CAN-SPAM), social media (FTC Endorsement Guides), and #privacy laws? That's where it gets tricky. Our comprehensive guide breaks down #FTC regulations, CAN-SPAM requirements, and privacy compliance and other essential #marketing laws you need to be aware of: https://lnkd.in/dptrqtiu #FTCCompliance #MarketingLaw #TruthInAdvertising

Businesses spend about 25% of their revenue on compliance. In some firms, it's over half their revenue. And 35% of risk executives say compliance is the biggest threat to growth. But what if I told you that 90% of risk teams using #AI say it's already improving their work? 68% of financial services firms now call AI in #compliance a top priority. AI tools like Luthor automatically flag policy violations, scan for privacy issues, and catch regulatory problems before they escalate. The companies that embrace this will save money and actually move faster because they can approve #marketing campaigns with confidence, knowing the AI caught any obvious issues. Our guide shows how to implement AI for marketing compliance without the risks: https://lnkd.in/gX29E5Kq #AICompliance #MarketingAutomation #RegulatoryTech

$19.6 billion to $83 billion by 2032. That's the projected growth for the #RegTech market. Why the explosion? Because manual #compliance isn't working anymore.  Regulations change too fast, and the volume is too high. Companies are realizing that throwing more people at compliance problems isn't sustainable – especially when non-compliance costs 2.71 times more than being compliant. We're seeing this shift firsthand when #marketing teams that used to wait days and weeks for compliance approvals are now getting almost real-time feedback. And when the cost of missing something could be in the millions, automation starts looking pretty smart. At Luthor, we're part of this growth story. But more importantly, we're helping our clients avoid becoming a cautionary tale about what happens when you don't keep up. #RegTech #ComplianceAutomation #FinancialServices

Since 2022, SEC-registered firms have been allowed to use testimonials, endorsements, and third-party ratings in their marketing (with proper disclosures, obviously), while state-registered advisors were still banned from using these tools. So, while federal firms could showcase client success stories and third-party ratings, state firms were limited to more traditional marketing approaches. Not exactly fair when you're competing for the same prospects. NASAA's proposed model rule would fix this by allowing states to adopt marketing standards that match the SEC's. The comment period runs through August 28, so states could start implementing these changes relatively quickly. For #marketing teams at state-registered firms, this could open up new opportunities – assuming your #compliance process can handle the additional oversight these marketing tactics require. https://lnkd.in/enJpYNi8

The SEC just launched an AI Task Force, led by Valerie Szczepanik, their new Chief AI Officer. The agency says it wants to "enhance innovation and efficiency" through #AI, but the real takeaway is that the #SEC is likely building AI tools to spot problems faster, and could start using them in the near future. What does that mean for your #marketing compliance? Well, they'll probably catch issues that slip past manual reviews. The same technology that helps them work more efficiently could also make them better at finding violations. When regulators start using AI to review your content, maybe it's time you used AI to review it first. Just a thought. At Luthor, we help you catch compliance issues before they catch you. Better to flag that risky phrase today than explain it to an AI-powered regulator tomorrow. https://lnkd.in/eTUZSH_t

U.S. banks just spent $22.5 billion on marketing in 2024. That's an 8% increase from last year, with some firms putting up to 10% of their revenue into advertising. But here's what caught our attention in this new research: digital banking ad spend bounced back with 18.1% growth and will probably hit another 20% in 2025. Banks are clearly betting big on #digital channels trying to capture younger audience. Yet all this digital marketing still needs to comply with strict financial #regulations. Every social media post, every email campaign, every targeted ad has to meet the same compliance standards as traditional marketing. We're seeing #banks struggle with this balance – they want to move fast in digital channels while making sure they don't accidentally step over regulatory lines. The smart ones are building compliance reviews right into their #marketing workflows instead of treating it as an afterthought. Because spending millions on marketing only to get fined later isn't much of a growth strategy. Read our deep dive on bank advertising strategies and #compliance in this digital age:  https://lnkd.in/g-QjwamJ

Webull just paid $1.6 million for what probably seemed like smart marketing at the time. All because their influencer posts weren't "fair and balanced" and included "exaggerated and promissory statements." Plus they failed to properly supervise these communications or keep records. While being increasingly important, since #GenZ were being entering financial scene, social media compliance is where we see firms trip up. We constantly see companies struggle with social media governance. It seems like you can't just hand influencers a script and hope for the best. #Marketing teams want to move fast, #compliance teams want control, and somehow nobody wants to be responsible when things go wrong. But FINRA's message in this case was crystal clear: if someone promotes your firm, their message needs compliance review. Period. Doesn't matter if it's an influencer with millions of followers or your intern posting on LinkedIn. And keeping up with all the new rules and regulators is only half of the challenge. The other half is keeping pace with social media while maintaining #compliance standards. Because by the time you're manually reviewing every post, you've already lost the speed that makes social media effective to capture that younger up-and-coming audience. So, if you need help in building such systems Luthor’s team of compliance pros is happy to help. https://lnkd.in/gZzQ4Hty

-$140 million. That's what happens when marketing compliance goes wrong. The #SEC recently charged First Liberty Building & Loan with running a massive Ponzi scheme. And their #marketing materials were a #compliance nightmare waiting to happen. They promised 18% returns and claimed their loans "rarely defaulted." Yet in reality most loans defaulted and they were shuffling money around to keep the scheme alive. Classic signs that should have triggered immediate compliance review. These aren't new tactics. We see similar language all the time – unrealistic return promises, unsubstantiated performance claims, misleading success rates. And we built Luthor because these cases keep happening. That potentially dangerous language has to be caught before it ever goes live. After all, your marketing materials can either protect you or become exhibits A through Z in a regulatory case. Which would you prefer? https://lnkd.in/gCBWzWip #ComplianceNews #RegulatoryEnforcement #MarketingCompliance