Investing.com - Robinhood (NASDAQ:HOOD) Securities LLC and Robinhood Financial LLC, known collectively as Robinhood, have agreed to pay a total of $45 million in civil penalties to settle charges by the U.S. Securities and Exchange Commission (SEC), the agency said on Monday.
The settlement addresses allegations of multiple regulatory violations in Robinhood's brokerage operations.
The SEC found that Robinhood failed to comply with several significant regulatory requirements. These included inaccuracies in reporting trading activity, non-compliance with short sale rules, delays in submitting suspicious activity reports, improper maintenance of books and records, and insufficient measures to safeguard customer information.
The settlement, which Robinhood has agreed to without admitting or denying the SEC's findings, reflects the resolution of a series of charges that highlight the necessity for broker-dealers to operate within the strict boundaries of financial regulations.
This agreement follows previous regulatory scrutiny on Robinhood, a popular trading platform known for its commission-free trades and user-friendly interface, which has been credited with democratizing stock trading for a new generation of investors.
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