Robinhood has agreed to pay $45 million in civil penalties to settle charges of securities law violations.
According to a Jan. 13 statement, this settlement follows an investigation by the US Securities and Exchange Commission (SEC) into the activities of its subsidiaries, Robinhood Securities LLC and Robinhood Financial LLC.
The penalties include $33.5 million from Robinhood Securities and $11.5 million from Robinhood Financial.
The breaches
According to Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement, Robinhood’s failures spanned several critical areas, including inaccurate reporting, poor cybersecurity measures, and inadequate fraud prevention.
Wadhwa stated:
“Today’s order finds that two Robinhood firms failed to observe a broad array of significant regulatory requirements, including failing to accurately report trading activity, comply with short sale rules, submit timely suspicious activity reports, maintain books and records, and safeguard customer in
We współpracy z: https://cryptoslate.com/robinhood-pays-45m-to-settle-sec-violations-over-reporting-and-cybersecurity-missteps/
