Madison Avenue Securities LLC has agreed to pay a fine of $125,000 as part of a settlement with the Financial Industry Regulatory Authority (FINRA) according to a recent article in FNG.
Without admitting or denying FINRA’s findings, dated September 3, 2025, Madison Avenue Securities consented to the sanctions and to the entry of findings that it allegedly distributed or made available to the customers consolidated reports containing inaccurate information or omitting material information about whether certain assets were held away from the firm.
FNG states that from January 2020 to the present, Madison Avenue Securities allegedly allowed its registered representatives to generate consolidated reports through an electronic platform, then distribute or make available those reports to clients.
According to the FINRA report, personnel in the firm’s home office handled manual entries into that platform, but allegedly they were not reasonably trained, resulting in thousands of manually entered, held-away assets being not designated as held away or inaccurately designated as not held away.
FINRA states that Madison Avenue Securities allegedly did not update automated data feeds from seven product sponsors into its consolidated reporting platform when it expanded offerings of those sponsors’ products, resulting in thousands of assets not being correctly designated as held away.
The communications that omitted information about held-away assets and SIPC coverage, FINRA alleges, did not provide a sound basis to evaluate the facts concerning customer assets, in violation of FINRA Rule 2210(d)(1)(A). The alleged communications that inaccurately categorized assets as not held away were false and misleading, in violation of FINRA Rule 2210(d)(1)(B), according to the report.
FINRA also stated that Madison Avenue Securities did not establish and maintain a supervisory system reasonably designed to achieve compliance with FINRA Rules 2210 and 4511, Exchange Act § 17(a), and Exchange Act Rule 17a–4 with respect to consolidated reports.
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