Robinhood Securities and Robinhood Financial have agreed to pay $45 million in civil penalties to settle a range of Securities and Exchange Commission allegations, the regulator said Monday.
"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 information," said Sanjay Wadhwa, the SEC's acting enforcement director, in a statement.
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Robinhood said it was pleased to resolve the matters.
"As the SEC's order acknowledges, most of these are historical matters that our broker-dealers have previously addressed," said Lucas Moskowitz, Robinhood's general counsel, in a statement. "We are well-positioned to continue leading the industry in developing the innovative products and services our customers want and need to participate in U.S. and global financial markets. We look forward to working with the SEC under a new administration."
