Robinhood settles SEC claims for $45 million

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Robinhood settles SEC claims for $45 million

SEC accused Robinhood Markets and in turn, the company has agreed to pay $45m for several regulatory breaches.

The SEC’s inquiry found that Robinhood’s brokerage units, Robinhood Securities LLC and Robinhood Financial LLC, failed to:

  • It is required to have accurate records of trade operations.
  • If any of these seem unusual or out of place report them to us at once.
  • There are legal requirements to short sale and these has to be met.

Save every conversation between the employees that took place outside the company-approved messaging platforms such as WhatsApp.

In addition, according to SEC, Robinhood failed to implement adequate measures to guarantee the security of client data, that caused the 2021 data leak that put at risk millions of usernames and email addresses.

Lucas Moskowitz, the General Counsel of Robinhood Markets, stated that they do not want the current challenges and the business is pleased to state that most of them have been fixed in the past.

This settlement can be added up to previous fines that Robinhood has received from its regulators.

The Robinhood enforcement action by the SEC targets to secure overall compliance with record-keeping and customer protection rules in the entire financial industry.

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