SEC charges Robinhood with securities violations; brokerage to pay $45 million penalty [View all]

Source: NBC News/CNBC

Jan. 13, 2025, 5:31 PM EST / Source: CNBC


The Securities and Exchange Commission on Monday said two related Robinhood broker-dealers agreed to pay $45 million in combined penalties to settle administrative charges that they violated more than 10 separate securities law provisions related to their brokerage operations.

The violations by Robinhood Securities LLC and Robinhood Financial LLC are related to failures to report suspicious trading in a timely manner, failing to implement adequate identity theft protections and failing to adequately address unauthorized access to Robinhood computer systems, the SEC said.

The two Robinhood entities also had longstanding failures to maintain and preserve electronic communications, failed to retain copies of operational databases, and failed to maintain some customer communications as legally required between 2020 and 2021, according to the agency.

The SEC said that Robinhood Securities alone failed for more than five years “to provide complete and accurate securities trading information, known as blue sheet data” to the agency.

Read more: https://www.nbcnews.com/business/business-news/sec-charges-robinhood-securities-violations-brokerage-pay-45-million-p-rcna187525