Robinhood Reaches Settlement to Pay $45M to SEC
After an investigation, Robinhood has agreed to pay a settlement of $45 million to the US Securities and Exchange Commission for violating multiple securities laws.
The settlement applies to two of their broker-dealer entities, Robinhood Securities LLC and Robinhood Financial LLC.
The SEC found that these entities did not follow important regulatory requirements such as accurately reporting trading activity, complying with short sale rules, submitting timely suspicious activity reports, maintaining records, and protecting customer information.
In a statement on Jan. 13, the SEC stated that the Robinhood entities admitted to these violations.
The Jan. 13 order also revealed that the SEC found that the Robinhood entities failed to save electronic communications from customers between 2020 and 2021, and that at least 11,849 Electronic Blue Sheets submitted by Robinhood contained incorrect information or omissions.
