How to Build a 2025-Ready FINRA Rule 2210 Social-Media Influencer Program: Lessons from the 2023 Sweep and the M1 Finance $850k Fine

The financial services industry is grappling with a new reality: social media influencers are driving investment decisions, and FINRA is watching closely. In 2024, FINRA brought its first enforcement case against a broker-dealer's social media 'finfluencer' program, fining the firm $850,000 for posts that weren't fair and balanced. (Luthor) This landmark case, combined with FINRA's February 2023 targeted-exam sweep findings, has created an urgent need for broker-dealers to develop comprehensive written supervisory procedures (WSPs) for influencer campaigns.

The stakes couldn't be higher. FINRA's Advertising Regulation Department reviewed over 63,000 communications filings in 2023 alone, and the regulator imposed $89 million in fines across 453 disciplinary actions. (Luthor) For firms venturing into influencer marketing, the M1 Finance settlement serves as a stark reminder that traditional advertising rules apply to social media content, regardless of the platform or creator.

This guide will walk you through building a FINRA Rule 2210-compliant influencer program from the ground up. We'll dissect the specific control gaps FINRA identified in its 2023 sweep, analyze the disclosure and record-keeping failures that led to M1 Finance's penalty, and provide step-by-step workflows for onboarding, pre-approval, monitoring, and record retention that will keep your firm audit-ready.

Understanding FINRA Rule 2210 in the Influencer Context

FINRA Rule 2210 governs all communications with the public, including social media posts by influencers promoting financial products or services. The rule requires that all communications be fair, balanced, and not misleading, while also mandating proper supervision and record-keeping. (Luthor)

The challenge with influencer content is that it often feels organic and conversational, which can mask its promotional nature. A review of 576 social influencers found that 80% failed to disclose paid promotions, which puts brands at significant legal risk. (Luthor) This statistic becomes particularly concerning when you consider that 69% of consumers trust influencer recommendations more than information straight from brands. (Luthor)

FINRA's approach to influencer content focuses on three key areas:

Content Standards: All influencer posts must meet the same fair and balanced requirements as traditional advertising. This means avoiding exaggerated claims, providing balanced risk disclosures, and ensuring that any performance data is presented with appropriate context and disclaimers.

Supervision Requirements: Firms must have adequate procedures to review and approve influencer content before publication. The 2023 sweep revealed that many firms lacked proper pre-approval processes for social media content, leading to regulatory violations.

Record-Keeping Obligations: All influencer communications must be preserved for the required retention period, typically three years. This includes not just the final posts but also drafts, approval records, and any modifications made after publication.

Key Findings from FINRA's 2023 Social Media Sweep

FINRA's February 2023 targeted examination sweep focused specifically on social media practices at broker-dealers. The findings revealed several common compliance gaps that firms must address when building influencer programs. (Luthor)

Inadequate Written Supervisory Procedures

The most significant finding was that many firms lacked comprehensive WSPs for social media activities. FINRA found that existing procedures often failed to address:

• Pre-approval requirements for different types of social media content

• Clear guidelines for what constitutes acceptable promotional language

• Specific procedures for monitoring third-party content, including influencer posts

• Record-keeping requirements for social media communications

Firms that had WSPs in place often found them to be outdated or too generic to provide meaningful guidance for social media-specific scenarios.

Insufficient Content Review Processes

The sweep revealed that many firms relied on post-publication monitoring rather than pre-approval for social media content. This approach proved inadequate for several reasons:

• Social media content can go viral quickly, making post-publication corrections ineffective

• Regulatory violations occur at the moment of publication, not when they're discovered

• Influencer content often includes subtle promotional elements that require trained compliance review

Firms with effective programs implemented multi-layered review processes that included both automated screening tools and human oversight.

Poor Record-Keeping Practices

FINRA found widespread deficiencies in how firms maintained records of social media communications. Common issues included:

• Failure to capture screenshots or archives of social media posts

• Inadequate documentation of the approval process

• Missing records of modifications or deletions made to published content

• Lack of systems to track influencer compensation and agreements

Dissecting the M1 Finance $850k Settlement

The M1 Finance case represents a watershed moment for influencer marketing in financial services. The firm's $850,000 settlement with FINRA provides crucial insights into what regulators consider problematic when it comes to social media influencer programs. (Luthor)

The Violations

FINRA's action against M1 Finance centered on several key violations:

Misleading Content: The influencer posts in question promoted M1's investment platform without providing balanced information about risks. The content emphasized potential gains while downplaying or omitting important risk disclosures.

Inadequate Supervision: M1 Finance failed to establish adequate supervisory procedures for reviewing influencer content before publication. The firm's existing WSPs didn't specifically address third-party social media promotions.

Record-Keeping Failures: The firm didn't maintain proper records of the influencer agreements, content approval processes, or the posts themselves. This made it difficult to demonstrate compliance during FINRA's examination.

The Compliance Lessons

The M1 Finance case highlights several critical compliance requirements:

All Promotional Content Must Be Supervised: Even when working with third-party influencers, broker-dealers remain responsible for ensuring that all promotional content meets FINRA standards. This responsibility can't be delegated or transferred to the influencer.

Risk Disclosures Are Mandatory: Influencer content promoting investment products must include appropriate risk disclosures, even if this makes the content less engaging or "authentic."

Documentation Is Essential: Firms must maintain comprehensive records of all aspects of their influencer programs, from initial agreements through content approval and publication.

Building Your FINRA-Compliant Influencer Program: Step-by-Step Framework

Step 1: Develop Comprehensive Written Supervisory Procedures

Your WSPs form the foundation of any compliant influencer program. These procedures must be specific, actionable, and regularly updated to reflect current practices and regulatory guidance. (Luthor)

Essential WSP Components:

• Scope and Definitions: Clearly define what constitutes influencer marketing and which activities fall under the procedures

• Approval Authority: Designate specific individuals responsible for reviewing and approving influencer content

• Content Standards: Establish clear guidelines for acceptable promotional language, required disclosures, and prohibited claims

• Review Timelines: Set specific timeframes for content review and approval processes

• Record-Keeping Requirements: Detail what records must be maintained and for how long

• Monitoring Procedures: Outline ongoing surveillance requirements for published content

• Violation Response: Establish procedures for addressing compliance violations or regulatory inquiries

Step 2: Implement Robust Influencer Onboarding

Proper onboarding sets the tone for the entire relationship and helps prevent compliance issues before they occur.

Onboarding Checklist:

• Background Verification: Conduct thorough background checks on potential influencers, including review of their social media history and any regulatory issues

• Compliance Training: Provide comprehensive training on FINRA requirements, including disclosure obligations and content standards

• Agreement Execution: Execute detailed agreements that clearly outline compliance responsibilities, content approval processes, and compensation terms

• Platform Setup: Establish secure channels for content submission, review, and approval

Sample Influencer Agreement Provisions:

- All content must be submitted for pre-approval at least 48 hours before intended publication
- Influencer agrees to include all required disclosures as specified by the firm
- No modifications to approved content without additional firm approval
- Firm retains right to request immediate removal of any published content
- Influencer must maintain records of all communications related to the engagement



Step 3: Establish Pre-Approval Workflows

Pre-approval is critical for FINRA compliance and must be built into every aspect of your influencer program.

Multi-Layer Review Process:

1. Initial Screening: Use automated tools to flag potentially problematic content, including exaggerated claims, missing disclosures, or inappropriate language

2. Compliance Review: Have qualified compliance personnel review all content for FINRA Rule 2210 compliance

3. Legal Review: For complex content or new product promotions, include legal review in the approval process

4. Final Approval: Designate a senior compliance officer with authority to provide final approval

Content Review Criteria:

• Fair and Balanced: Does the content present a balanced view of the product or service?

• Risk Disclosures: Are appropriate risk warnings included and prominently displayed?

• Performance Claims: Are any performance claims substantiated and presented with proper context?

• Disclosure Requirements: Are all required disclosures (compensation, material connections, etc.) clearly visible?

• Regulatory Compliance: Does the content comply with all applicable FINRA rules and guidance?

Step 4: Implement Real-Time Monitoring Systems

Even with robust pre-approval processes, ongoing monitoring is essential to catch issues that may arise after publication. (Luthor)

Monitoring Components:

• Automated Surveillance: Deploy AI-powered tools to monitor influencer posts for compliance issues, unauthorized modifications, or problematic comments

• Regular Audits: Conduct periodic reviews of influencer content to ensure ongoing compliance

• Comment Monitoring: Monitor comments and responses to influencer posts for potential compliance issues

• Performance Tracking: Track engagement metrics and audience responses to identify potential issues

Red Flag Indicators:

• Unauthorized modifications to approved content

• Comments suggesting misleading or confusing messaging

• Engagement patterns that suggest inappropriate targeting

• Missing or obscured disclosure language

Step 5: Establish Comprehensive Record-Keeping Systems

Proper record-keeping is not just a regulatory requirement but also essential for demonstrating compliance during examinations. (Luthor)

Required Records:

• Influencer Agreements: All contracts, amendments, and related correspondence

• Content Submissions: Original content submissions from influencers

• Approval Records: Documentation of the review and approval process, including reviewer comments and decisions

• Published Content: Screenshots or archives of all published content

• Modification Records: Documentation of any changes made to content after initial approval

• Compensation Records: Detailed records of all payments and benefits provided to influencers

• Training Records: Documentation of compliance training provided to influencers

• Monitoring Reports: Records of ongoing surveillance activities and findings

Record Retention Best Practices:

• Maintain records for at least three years from the date of last use

• Use secure, searchable systems that allow for easy retrieval during examinations

• Implement backup and disaster recovery procedures

• Regularly audit record-keeping systems for completeness and accuracy

Sample Disclosure Language and Automation

Proper disclosure is fundamental to FINRA compliance, and the language must be clear, prominent, and appropriate for the medium. (Luthor)

Standard Disclosure Templates:

Investment Risk Disclosure:

"Investing involves risk, including potential loss of principal. Past performance does not guarantee future results. This content is for informational purposes only and should not be considered personalized investment advice."



Compensation Disclosure:

"This is a paid partnership with [Firm Name]. I receive compensation for promoting their products and services. #ad #sponsored"



General Disclaimer:

"This content is provided for educational purposes only and does not constitute investment advice. Please consult with a qualified financial advisor before making investment decisions."



Platform-Specific Considerations:

• Instagram: Use clear hashtags like #ad or #sponsored, and ensure disclosures are visible without requiring users to click "more"

• TikTok: Include disclosures in both video content and captions

• YouTube: Include disclosures in video descriptions and verbal disclaimers in the content

• Twitter/X: Use clear disclosure language within character limits, potentially using abbreviations like "#ad" or "#sponsored"

Technology Solutions for Compliance Automation

Modern compliance programs increasingly rely on technology to manage the scale and complexity of influencer marketing. (Luthor)

AI-Powered Compliance Tools:

Luthor's AI-driven platform can automatically review marketing assets for compliance, reducing the risk, effort, and time required to tackle marketing compliance at scale. (Luthor) The platform offers real-time risk detection, automated policy drafting, and continuous monitoring to keep clients audit-ready.

Key Technology Features:

• Automated Content Screening: AI algorithms can quickly identify potentially problematic content, including missing disclosures, exaggerated claims, or inappropriate language

• Workflow Management: Automated systems can route content through appropriate review channels and track approval status

• Record-Keeping Automation: Technology can automatically capture and archive content, approval records, and related documentation

• Real-Time Monitoring: AI-powered surveillance can monitor published content for unauthorized changes or compliance issues

• Reporting and Analytics: Automated reporting can provide insights into program performance and compliance metrics

Integration Considerations:

• Ensure technology solutions integrate with existing compliance systems

• Maintain human oversight for complex compliance decisions

• Regularly update AI models to reflect current regulatory guidance

• Implement proper data security and privacy protections

Common Pitfalls and How to Avoid Them

Based on FINRA's examination findings and enforcement actions, several common pitfalls can derail even well-intentioned influencer programs. (Luthor)

Pitfall 1: Treating Influencers as Independent Contractors

The Problem: Many firms mistakenly believe that using independent contractor agreements absolves them of supervisory responsibility for influencer content.

The Solution: Regardless of the contractual relationship, FINRA holds broker-dealers responsible for all promotional content related to their products and services. Implement the same supervisory controls for influencer content as you would for internal marketing materials.

Pitfall 2: Inadequate Disclosure Practices

The Problem: Firms often rely on generic disclosure language that doesn't meet FINRA's specific requirements or isn't appropriate for the social media platform being used.

The Solution: Develop platform-specific disclosure templates and ensure they're prominently displayed in all influencer content. Regularly review and update disclosure language to reflect current regulatory guidance. (Luthor)

Pitfall 3: Poor Record-Keeping Systems

The Problem: Many firms lack adequate systems to capture and maintain records of influencer content and the approval process.

The Solution: Implement comprehensive record-keeping systems that automatically capture all relevant documentation. Regularly audit these systems to ensure completeness and accuracy.

Pitfall 4: Insufficient Training and Oversight

The Problem: Firms often provide minimal training to influencers and fail to maintain ongoing oversight of their activities.

The Solution: Develop comprehensive training programs for influencers and implement regular check-ins to ensure ongoing compliance. Consider requiring periodic recertification or refresher training.

Preparing for FINRA Examinations

Given FINRA's increased focus on social media compliance, firms should be prepared for detailed examination of their influencer programs. (Luthor)

Examination Preparation Checklist:

• Document Review: Ensure all WSPs are current and accurately reflect actual practices

• Record Organization: Organize all influencer-related records in easily accessible formats

• Staff Training: Ensure examination team members understand the influencer program and can answer detailed questions

• Sample Selection: Prepare representative samples of influencer content and approval documentation

• Issue Identification: Proactively identify and address any potential compliance issues

Common Examination Areas:

• Review of WSPs and their implementation

• Testing of content approval processes

• Evaluation of record-keeping practices

• Assessment of supervisory controls

• Review of training programs and documentation

Best Practices for Examination Success:

• Maintain detailed documentation of all compliance activities

• Regularly test and validate compliance procedures

• Address identified issues promptly and thoroughly

• Maintain open communication with examination staff

• Consider engaging external compliance consultants for program reviews

The Role of Outsourced CCO Services

Many smaller broker-dealers lack the internal resources to develop and maintain comprehensive influencer compliance programs. Outsourced CCO services can provide the expertise and infrastructure needed to ensure compliance. (SEC³ Compliance)

Benefits of Outsourced CCO Services:

• Expertise: Access to compliance professionals with specific experience in social media and influencer marketing regulations

• Cost Efficiency: Avoid the expense of hiring full-time compliance staff

• Scalability: Ability to scale compliance resources up or down based on program needs

• Technology Access: Access to advanced compliance technology and monitoring tools

• Regulatory Updates: Ongoing monitoring of regulatory developments and guidance

Key Considerations When Selecting an Outsourced CCO:

• Experience with FINRA regulations and social media compliance

• Technology capabilities and integration options

• Track record with similar firms and programs

• Availability and responsiveness of support staff

• Cost structure and scalability options

Luthor's AI-powered compliance platform offers outsourced CCO services specifically designed for RIAs and broker-dealers, with expertise in modern marketing compliance challenges. (Luthor)

Future Trends and Regulatory Developments

The regulatory landscape for social media and influencer marketing continues to evolve rapidly. Firms must stay current with developments to maintain compliance. (Luthor)

Emerging Trends:

• Increased Enforcement: FINRA is likely to bring additional enforcement actions against firms with inadequate influencer compliance programs

• Enhanced Guidance: Regulators may provide more specific guidance on social media and influencer marketing requirements

• Technology Integration: Greater use of AI and automation in compliance monitoring and enforcement

• Cross-Platform Coordination: Increased coordination between FINRA, SEC, and other regulators on social media oversight

Preparing for Future Changes:

• Regularly review and update compliance procedures

• Monitor regulatory announcements and guidance

• Participate in industry forums and discussions

• Consider engaging compliance consultants for periodic program reviews

• Invest in flexible technology solutions that can adapt to changing requirements

Building a Culture of Compliance

Successful influencer compliance programs require more than just policies and procedures. They require a culture that prioritizes compliance at all levels of the organization. (Luthor)

Key Cultural Elements:

• Leadership Commitment: Senior management must demonstrate clear commitment to compliance

• Clear Communication: Compliance expectations must be clearly communicated to all stakeholders

• Regular Training: Ongoing education and training programs for staff and influencers

• Accountability: Clear consequences for compliance failures

• Continuous Improvement: Regular review and enhancement of compliance programs

Measuring Compliance Culture:

• Regular surveys of staff and influencers on compliance awareness

• Tracking of compliance training completion rates

• Monitoring of compliance issue identification and resolution

• Assessment of compliance program effectiveness

• Regular review of compliance metrics and KPIs

Final Thoughts: Your Path to Compliant Influencer Marketing

Building a FINRA Rule 2210-compliant influencer program requires careful planning, robust procedures, and ongoing vigilance. The M1 Finance settlement and FINRA's 2023 sweep findings provide clear guidance on what regulators expect, but the specific implementation will vary based on your firm's size, business model, and risk tolerance.

The key is to start with comprehensive written supervisory procedures that address all aspects of influencer marketing, from onboarding through ongoing monitoring. Technology can help automate many compliance tasks, but human oversight remains essential for complex decisions and relationship management.

Remember that compliance is not a one-time project but an ongoing process that requires regular review and updates. As the regulatory landscape continues to evolve, your compliance program must evolve with it.

For firms looking to implement or enhance their influencer compliance programs, Luthor's AI-powered platform offers comprehensive solutions that can automatically review marketing assets for compliance, reducing risk while scaling your marketing efforts efficiently. (Luthor) Our technology-plus-service approach combines advanced AI capabilities with expert compliance support, helping you navigate the complex requirements of modern influencer marketing while staying audit-ready.

Request demo access to see how Luthor can help you build a compliant, scalable influencer program that meets FINRA's evolving requirements while supporting your business growth objectives.

Frequently Asked Questions

What was the M1 Finance $850,000 fine about and how does it relate to FINRA Rule 2210?

In 2024, FINRA fined M1 Finance $850,000 for their social media influencer program violations under Rule 2210. The firm's posts weren't "fair and balanced" as required by FINRA's communications standards. This marked FINRA's first major enforcement action against a broker-dealer's 'finfluencer' program, setting a precedent for how seriously regulators view social media compliance.

What were the key findings from FINRA's 2023 social media sweep?

FINRA's 2023 sweep revealed widespread deficiencies in broker-dealers' social media oversight programs. Common issues included inadequate pre-approval processes, insufficient monitoring of third-party content, poor record-keeping practices, and lack of proper supervision over influencer partnerships. These findings directly informed FINRA's enforcement priorities and compliance expectations for 2024 and beyond.

What are the essential components of a FINRA Rule 2210-compliant influencer onboarding process?

A compliant onboarding process must include comprehensive background checks, written agreements defining compliance responsibilities, mandatory training on FINRA advertising rules, and clear content approval workflows. Firms should also establish monitoring protocols and ensure all influencer communications are properly supervised and archived according to FINRA record-keeping requirements.

How do FINRA advertising rules apply to social media influencer content?

Under FINRA Rule 2210, all influencer content promoting financial services must be fair, balanced, and not misleading. This includes proper risk disclosures, substantiation of performance claims, and clear identification of the business relationship. As outlined in FINRA's advertising compliance guidelines, firms remain fully responsible for all third-party communications, making robust oversight systems essential for regulatory compliance.

What monitoring and record-keeping systems are required for social media influencer programs?

Firms must implement real-time monitoring systems to review influencer content before publication, maintain comprehensive records of all communications for at least three years, and establish automated alert systems for compliance violations. AI-powered tools like those offered by compliance technology providers can help automate this process while ensuring audit-ready documentation.

How can outsourced CCOs help manage social media influencer compliance risks?

Outsourced CCOs bring specialized expertise in FINRA Rule 2210 compliance without the cost of full-time staff. They can design comprehensive influencer oversight programs, implement proper monitoring systems, and ensure ongoing regulatory compliance. With RegTech projected to reach $21 billion by 2027, many firms are leveraging AI-powered fractional CCO solutions to manage complex social media compliance requirements effectively.