FINRA published Regulatory Notice 26-03 proposing reforms to reduce burdens on bulk customer account transfers, Madison Avenue Securities restructured its ownership with multiple departures and a new CEO designation, and the SEC issued three rule guidance updates across 103 total events.

FINRA Regulatory Notice 26-03: Bulk Transfer Reform

FINRA published Regulatory Notice 26-03, proposing changes to reduce burdens and guide practices regarding the bulk transfer or assignment of customer accounts. Bulk account transfers occur when a broker-dealer closes, merges, or reorganizes — requiring the systematic movement of thousands of customer accounts to successor firms. The current process is widely regarded as cumbersome, with firms navigating overlapping FINRA rules, ACATS system limitations, and customer notification requirements that can delay transfers and create operational risk.

The proposed reforms could affect every broker-dealer that has participated in or been the recipient of a bulk transfer. For independent broker-dealers with large advisor networks — firms like LPL Financial, Raymond James, and Commonwealth — streamlined bulk transfer rules would reduce the operational friction of advisor transitions. The comment period will give industry participants the opportunity to shape what could become one of the most impactful procedural changes in FINRA's recent history.

Madison Avenue Securities Restructures Ownership

Madison Avenue Securities, LLC (CRD 23224) in San Diego executed a significant ownership restructuring. Three entities departed: member Cody Grant Foster (CRD 4237075), owner Metcalfe, Inc., and member Jennifer Schendel (CRD 6136948). Meanwhile, the firm's internal leadership was reorganized with existing executives taking on expanded roles including CEO responsibilities. The departure of an ownership entity (Metcalfe, Inc.) alongside individual members suggests a change in the firm's control structure that will be reflected in its updated Form BD.

SEC Issues Three Rule Guidance Updates

The SEC published three compliance and disclosure interpretation updates covering Rules 13e-3 and 14e-2. Rule 13e-3 governs going-private transactions — situations where a public company's shares are taken off the market through management buyouts or similar transactions. Rule 14e-2 covers the position of the subject company during a tender offer. New Question 163.02 added fresh guidance on tender offer response obligations.

These rule interpretations are particularly relevant for broker-dealers that advise on M&A transactions and tender offers, as they affect disclosure obligations and compliance procedures for firms involved in going-private and tender offer processes.

Benchmark Company Adds Directors, Restructures Finance

The Benchmark Company, LLC (CRD 22982) in New York hired Anthony Joseph DiCiollo (CRD 4976402) and Jacob Rappaport (CRD 4824681) as Directors, while moving Thomas N. Schirripa (CRD 2231180) from CFO/FINOP/PFO/POO to Treasurer/FINOP. The retitling suggests the firm is separating its CFO and FINOP functions — a governance improvement that creates clearer lines of responsibility between financial management and regulatory capital compliance.

Four BD Status Changes

Four broker-dealer status changes were recorded — the highest single-day count for this event type in February. Status changes can include transitions between active, suspended, and terminated states, and are among the most material filings a broker-dealer can make.

Across the Wire

Ten registration changes, four disclosure changes, 10 executive departures, eight new hires, and five role changes rounded out the broker-dealer activity. Thirteen RIA disclosures and four advisor moves were recorded. Two RIA firms graduated. Nine FOCUS reports were filed. DTCC issued one notice. The OCC processed four actions, two branch establishments, and one branch closing.

All data sourced from FINRA BrokerCheck, SEC EDGAR, OCC, DTCC, and the Finleet Terminal as of February 11, 2026. Entity profiles are available at terminal.finleet.com.