Robinhood to pay $45 million in SEC settlement

Investing.com – Robinhood (NASDAQ:HOOD) Securities LLC and Robinhood Monetary LLC, identified collectively as Robinhood, have agreed to pay a complete of $45 million in civil penalties to settle expenses by the U.S. Securities and Change Fee (SEC), the company mentioned on Monday.

The settlement addresses allegations of a number of regulatory violations in Robinhood’s brokerage operations.

The SEC discovered that Robinhood didn’t adjust to a number of important regulatory necessities. These included inaccuracies in reporting buying and selling exercise, non-compliance with brief sale guidelines, delays in submitting suspicious exercise studies, improper upkeep of books and information, and inadequate measures to safeguard buyer data.

The settlement, which Robinhood has agreed to with out admitting or denying the SEC’s findings, displays the decision of a collection of expenses that spotlight the need for broker-dealers to function inside the strict boundaries of economic laws.

This settlement follows earlier regulatory scrutiny on Robinhood, a preferred buying and selling platform identified for its commission-free trades and user-friendly interface, which has been credited with democratizing inventory buying and selling for a brand new technology of buyers.

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