Robinhood Securities LLC and Robinhood Financial LLC will be required to pay a $45 million fine for failure to comply with various rules imposed by the U.S. Securities and Exchange Commission (SEC).

SEC official Sanjay Wadhwa said: “Today’s order finds that two Robinhood firms failed to comply with a broad range of significant regulatory requirements, including failing to accurately report trading activity, comply with short-selling rules, file suspicious activity reports on a timely basis, maintain books and records, and protect customer information.”

The investigation includes charges of providing suspicious data since 2019, exposing customer data to hackers, violating regulations on “maintaining electronic communications and protecting operational data,” among others.

Both brokers admitted to the SEC’s allegations and have agreed to “conduct internal audits and remediation plans to address these issues.” In this regard, Robinhood Securities will pay a fine of $33.5 million and Robinhood Financial will pay $11.5 million.

M.Pino

Source: beincrypto

(Reference image source: Bermix Studio on Unsplash)

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