Avenue Securities LLC has agreed to pay a fine of $300,000 as a part of a settlement with the Financial Industry Regulatory Authority (FINRA).
From January 2020 through March 2023, Avenue Securities’ affiliate arranged with approximately 25 influencers, all of whom were based in Brazil, to promote the firm and its affiliated companies to potential retail investors in Brazil through social media platforms, including in static video posts and in online interactive electronic forums.
Influencers were chosen to participate in Avenue’s influencer marketing program based on the relevance of the influencers’ social media content to the firm’s business. Avenue Securities’ foreign affiliate paid the influencers a fixed monthly fee for “content” that promoted the Avenue brand, including the firm’s products and services, on social media.
The influencers’ social media posts promoting the firm were retail communications…
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