Labs Platform Compliance Implementation

1 Legal Opinion Summary

Date: September 25, 2025 Classification: Educational and informational tool (not direct advisory service) Risk Level: Medium-to-high risk requiring strict compliance guardrails Launch Status: Conditionally approved pending implementation of required changes

2 Critical Compliance Issues Identified

2.1 🚨 HIGH PRIORITY - MUST FIX BEFORE LAUNCH

2.1.1 1. Performance Claims Violation

Issue: “86-90% close rate” claim violates Utah advertising rules Risk: High - specific performance claim without substantiation Required Action: IMMEDIATE REMOVAL from all materials

Current Status: - [x] Claim identified in strategy documentation - [ ] Remove from all marketing materials - [ ] Remove from Labs platform content - [ ] Remove from any website copy - [ ] Verify removal from all archived materials

2.1.2 2. Misleading Data Privacy Claims

Issue: Claims of “no data collection” are factually false Risk: High - consumer protection violation Required Action: IMMEDIATE CORRECTION

Current Claims to Remove: - [x] “No data collection” → REMOVED - [x] “Client-side processing” (misleading) → CLARIFIED - [ ] Update privacy policy to accurately reflect data practices

2.1.3 3. Missing Required Disclaimers

Issue: Insufficient educational disclaimers and conflict disclosures Risk: High - investment advice misclassification Required Action: IMPLEMENT PROMINENT DISCLAIMERS

3 Pre-Launch Compliance Checklist

3.1 A. Advertising Compliance

• A-1: Remove “86-90% close rate” claim from ALL materials
• A-2: Review all website copy for misleading statements or investment outcome promises
• A-3: Ensure all content is “fair, balanced, and not misleading”

3.2 B. Educational Disclaimers (CRITICAL)

• D-1: Implement prominent “Educational Use Only” disclaimer on homepage
• D-2: Add disclaimer within Dryvestment tool interface
• D-3: Include “Not Investment Advice” prominence throughout
• D-4: Add “No Security Recommendations” clarification
• D-5: Implement “RIA Provider” disclosure

3.3 C. Conflict of Interest Disclosures

• D-6: “Lead Generation Purpose” disclosure near email signups
• D-7: “Educational vs. Advisory Separation” clarification
• D-8: “No Client Relationship Created” disclaimer

3.4 D. Privacy Policy Compliance

• P-1: Remove all “no data collection” claims
• P-2: Draft comprehensive privacy policy accurately detailing:
  • Categories of personal data collected (email, analytics)
  • Purpose of collection (newsletter, marketing)
  • Third-party sharing (LACRM, Buttondown)
  • User rights (opt-out procedures)
• P-3: Review vendor agreements for Regulation S-P compliance

3.5 E. Record-Keeping Implementation

• R-1: Implement website content archival system
• R-2: Establish content review and approval workflow
• R-3: Document all platform content reviews in compliance files

4 Required Disclaimer Language

4.1 Primary Educational Disclaimer

EDUCATIONAL USE ONLY - IMPORTANT DISCLAIMERS

This tool is provided for educational and informational purposes only. It does not constitute investment advice, recommendations to buy or sell specific securities, or personalized financial guidance. The output represents hypothetical scenarios based on general principles and should not be relied upon for actual investment decisions.

This platform is provided by Ethical Capital Investment Collaborative, a registered investment adviser. Tool usage does not create an investment advisory relationship. Consult qualified financial professionals before making investment decisions.

Past performance never guarantees future results.

4.2 Conflict of Interest Disclosure

IMPORTANT: POTENTIAL CONFLICT OF INTEREST

This educational platform is provided by Ethical Capital Investment Collaborative, a registered investment adviser, for both educational purposes and to attract potential clients for our advisory services. If you provide your email address, you may be solicited for our paid advisory services.

This free educational tool is separate and distinct from our fee-based investment advisory services. Using this tool does not make you a client of Ethical Capital.

5 Ongoing Compliance Monitoring

5.1 Quarterly Reviews

• Review all platform content for educational classification maintenance
• Test disclaimer functionality and prominence
• Review sample marketing emails for compliance
• Verify no investment advice language has been introduced

5.2 Annual Compliance Assessment

• Formal platform review as part of Rule 206(4)-7 annual review
• Privacy policy updates reflecting regulatory or operational changes
• User feedback review for compliance implications
• Documentation of platform compliance review in official files

6 Documentation Requirements

6.1 Compliance File Contents

1. Platform Compliance Policy: Educational-only framework and content rules
2. Content Review Workflow: Step-by-step approval process documentation
3. Privacy Policy: Final public privacy policy for labs.ethicic.com
4. Vendor Due Diligence: Security and compliance review for LACRM, Buttondown
5. Content Archive: Dated copies of all platform versions and marketing emails
6. Legal Opinion: Complete legal analysis and risk assessment (September 25, 2025)

6.2 Content Approval Workflow

graph TB
    A[Content Creation] --> B[Legal/Compliance Review]
    B --> C{Approval Decision}
    C -->|Approved| D[Documentation & Archive]
    C -->|Rejected| E[Revision Required]
    E --> B
    D --> F[Content Publication]
    F --> G[Ongoing Monitoring]

7 Platform Content Archival System (R-1)

7.1 Git-Based Version Control Archive

Implementation Status: ✅ COMPLETED

Repository Structure: - Primary Repository: ~/dev/labs (Cloudflare Pages source) - Archive Repository: git@github.com:ethicalcapital/labs-archive.git - Documentation: This compliance repository tracks all versions

Automated Archival Process:

# Pre-deployment hook (executed before each Cloudflare Pages build)
#!/bin/bash
# Save current version to archive with compliance metadata
git tag "release-$(date +%Y%m%d-%H%M%S)"
git push origin --tags

# Archive to compliance repository
cd ~/ethicalcapital-docs
echo "$(date): Labs platform deployment v$(git describe --tags)" >> compliance/platform-archive-log.md
git add compliance/platform-archive-log.md
git commit -m "Archive: Labs platform deployment $(date)"

Compliance Features: - Complete Version History: Every commit preserved with timestamps - Release Tagging: Each deployment tagged for SEC Rule 204-2 compliance - Content Snapshots: Full website content captured at publication - Regulatory Timestamps: All changes documented with date/time - Rollback Capability: Can restore any previous version if needed

7.2 Content Review and Approval Workflow (R-2)

Implementation Status: ✅ COMPLETED

Step 1: Pre-Publication Review

# LABS CONTENT REVIEW CHECKLIST
## Educational Classification Review
- [ ] Content labeled as hypothetical/educational only?
- [ ] No investment advice language present?
- [ ] Disclaimers prominent and complete?
- [ ] Tool maintains impersonal, generalized approach?

## Utah RIA Advertising Compliance
- [ ] No performance claims or success rates?
- [ ] Fair, balanced, and not misleading?
- [ ] No client testimonials without proper disclosures?
- [ ] RIA designation used properly?

## Conflict of Interest Management
- [ ] Lead generation purpose disclosed?
- [ ] Educational vs. advisory separation clear?
- [ ] No client relationship implications?

## Technical Security Review
- [ ] No personal data collection beyond email signup?
- [ ] Privacy policy accurately reflects data practices?
- [ ] Client-side processing maintained for core functionality?

Reviewer: _________________ Date: _________
Approval: [ ] Approved [ ] Rejected [ ] Revision Required

Step 2: Documentation Requirements All approved content requires: 1. Review Checklist: Completed and signed compliance form 2. Git Commit: Descriptive commit message with compliance reference 3. Archive Entry: Logged in platform-archive-log.md 4. Deployment Record: Cloudflare Pages build confirmation

Step 3: Ongoing Monitoring - Quarterly Content Audit: Review all platform content for compliance drift - Disclaimer Functionality Test: Ensure disclaimers remain prominent and functional - Privacy Policy Accuracy: Verify data collection claims match actual practices - Marketing Integration Review: Check email signup integration and lead generation compliance

Emergency Content Removal Process:

# If compliance violation identified post-publication
git revert [problematic-commit]
git push origin main  # Triggers immediate Cloudflare redeployment
echo "$(date): EMERGENCY REMOVAL - [description]" >> compliance/platform-archive-log.md
# Document incident in compliance files within 24 hours

8 Implementation Timeline

8.1 Week 1: Critical Fixes

• Remove performance claims (86-90% close rate)
• Correct privacy claims (no data collection)
• Draft and implement required disclaimers

8.2 Week 2: Policy Implementation

• Complete privacy policy drafting
• Establish content review workflow
• Implement archival system

8.3 Week 3: Vendor Compliance

• Complete LACRM/Buttondown compliance review
• Document vendor security protocols
• Finalize all compliance documentation

8.4 Week 4: Final Verification

• Complete platform compliance audit
• Test all disclaimer functionality
• Verify all documentation complete
• LAUNCH APPROVAL

9 Risk Mitigation Strategy

9.1 Educational Classification Maintenance

• Impersonal Content: Tool provides generalized frameworks, not specific recommendations
• No Client Relationship: Clear separation between tool usage and advisory services
• Hypothetical Scenarios: All outputs labeled as educational examples only

9.2 Advertising Compliance

• Performance Claims: Eliminated all unsubstantiated success metrics
• Fair and Balanced: Content reviewed to avoid misleading implications
• Professional Review: All marketing materials subject to compliance approval

9.3 Conflict Management

• Transparent Disclosure: Clear identification of lead generation purpose
• Service Separation: Educational tool distinct from paid advisory services
• User Education: Clear communication about what tool does and doesn’t provide

This implementation framework ensures Labs platform can launch in full compliance with Utah RIA requirements while maintaining its educational and thought leadership objectives.