United States Securities and Exchange Commission (SEC) charged on Monday two broker-dealers, Robinhood Securities LLC and Robinhood Financial LLC, Robinhood Markets Inc. subsidiaries, for violating over 10 separate securities law provisions.
In a press release, the SEC revealed that it reached a settlement with the two entities, which agreed to pay $45 million in combined civil penalties. "It is essential to the Commission’s broader efforts to protect investors and promote the integrity and fairness of our markets that broker-dealers satisfy their legal obligations when carrying out their various market functions," Acting Director of the SEC’s Division of Enforcement Sanjay Wadhwa commented.
The SEC detailed that Robinhood failed to: timely investigate suspicious transactions, implement adequate policies that would protect the clients, and properly address unauthorized access to its computer systems.
