Robinhood to Pay $45 Million to Settle SEC Costs

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Robinhood to Pay  Million to Settle SEC Costs

On-line buying and selling agency Robinhood Markets has agreed to pay $45 million to settle U.S. Securities and Change Fee fees over report protecting, commerce reporting and different rule violations, the regulator mentioned on Monday.

Regulators discovered Robinhood Securities LLC and Robinhood Monetary LLC violated quite a few necessities corresponding to precisely reporting buying and selling exercise; submitting well timed studies of suspicious exercise; sustaining information and complying with quick sale guidelines, mentioned SEC performing director Sanjay Wadhwa in an announcement.

Robinhood additionally turned among the latest broker-dealers to confess to breaking guidelines over retaining work-related communications with staff’ use of messaging apps and different “off-channel” communication platforms.

The agency admitted to these failures in addition to poor buying and selling knowledge, referred to as blue sheets. Robinhood additionally didn’t adequately deal with cybersecurity dangers, regulators discovered.

Robinhood Normal Counsel Lucas Moskowitz mentioned the agency is happy to have resolved the issues.

“We’re well-positioned to proceed main the trade in creating the modern services our clients need and wish,” he mentioned in an announcement. “We sit up for working with the SEC underneath a brand new administration.”

(Reporting by Jonathan Stempel and Chris Prentice; Enhancing by Chris Reese and David Gregorio)

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