Online brokerage firm Robinhood has agreed to pay a settlement of $29.75 million to the Financial Industry Regulatory Authority (FINRA) to resolve investigations into its compliance and supervision practices. The settlement includes a $26 million fine and $3.75 million in restitution to customers. FINRA found that Robinhood was unable to properly manage its trade processing system, leading to delays in processing. The issues occurred between March 2020 and January 2021, during which Robinhood faced criticism for restricting trading in popular meme stocks. Additionally, Robinhood failed to address red flags of potential misconduct, resulting in Anti-Money Laundering and supervisory and disclosure violations. The company also did not adequately detect and investigate suspicious activities or properly monitor social media posts. The restitution was associated with Robinhood providing incorrect information to customers when changing market orders. Robinhood admitted to the findings without admitting or denying the charges.



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