Robinhood To Pay $70 Million , in Record Settlement With FINRA.
Robinhood has been fined $57 million by the Financial Industry Regulatory Authority (FINRA)... .
... and ordered to pay $12.6 million plus interest in restitution to thousands of customers.
Significant harm [was inflicted upon] millions of customers who received false or misleading information from the firm, .., FINRA, via statement.
... millions of customers affected by the firm’s systems outages in March 2020, and thousands of customers the firm approved to trade options even when it was not appropriate for the customers to do so, FINRA, via statement.
The settlement is not related to the meme-stock fiasco in which the trading platform temporarily restricted customers from buying shares of some companies.
The FINRA called into question Robinhood's willingness to follow the rules of the industry.
Compliance with these rules is not optional and cannot be sacrificed for the sake of innovation or a willingness to ‘break things’ and fix them later, Jessica Hopper, Executive Vice President and Head of FINRA’s Department of Enforcement, via press release.
Robinhood did not officially admit or deny the allegations, but did issue a statement.
Robinhood has invested heavily in improving platform stability, enhancing our educational resources, and building out our customer support and legal and compliance teams, Robinhood, via statement to Yahoo Finance.
We are glad to put this matter behind us and look forward to continuing to focus on our customers and democratizing finance for all, Robinhood, via statement to Yahoo Finance