
Robinhood Agrees to Pay $45 Million to SEC
The SEC has announced that Robinhood Securities LLC and Robinhood Financial LLC will pay a combined $45 million in civil penalties to settle multiple charges stemming from regulatory failures.
These failures included failing to comply with reporting and recordkeeping requirements, inadequate cybersecurity measures, and other compliance issues.
The charges were brought to light in a statement made by SEC official Sanjay Wadhwa on January 13. Wadhwa noted that the two Robinhood firms failed to meet numerous regulatory requirements, such as accurately reporting trading activity, adhering to short sale rules, submitting timely suspicious activity reports, maintaining proper books and records, and protecting customer information.
For example, between January 2020 and March 2022, the firms failed to file suspicious activity reports in a timely manner, causing delays in investigating potentially unlawful transactions. In addition, from April 2019 to July 2022, Robinhood did not have sufficient policies in place to safeguard customers from identity theft.