Robinhood To Pay $45 Million To Settle SEC Claims

Two subsidiaries of Robinhood Markets Inc. have agreed to pay $45 million in civil penalties to settle allegations brought by the SEC, Bloomberg News reported.

While Robinhood neither admitted nor denied the allegations, the company expressed satisfaction with resolving the matter and reaffirmed its commitment to compliance. I Photo: Robinhood Facebook

The SEC’s cease-and-desist order cited Robinhood Securities LLC and Robinhood Financial LLC for various regulatory violations, including failing to report suspicious activity promptly, preserving electronic communications, and complying with securities laws.

“Two Robinhood firms failed to observe a broad array of significant regulatory requirements,” said Sanjay Wadhwa, the SEC’s acting enforcement director.

Violations included failing to accurately report trading activity, comply with short-sale rules, submit timely suspicious activity reports, maintain records, and safeguard customer information.

While Robinhood neither admitted nor denied the allegations, the company expressed satisfaction with resolving the matter and reaffirmed its commitment to compliance.