Online trading firm Robinhood Markets agreed to pay $45 million to resolve U.S. Securities and Exchange Commission (SEC) charges related to registration, trade reporting and other rule violations, the regulator reported this Monday.
The financial authority found that Robinhood Securities and Robinhood Financial violated numerous requirements, such as accurately reporting trading activity, timely filing suspicious activity reports, maintaining records and complying with short selling rules, said Sanjay Wadhwa, acting director of the SEC, in a statement.
Robinhood also joined the list of stockbrokers that admitted violating rules related to withholding work communications through employees’ use of messaging apps and other “out-of-channel” communication platforms.
Read: Robinhood buys back FTX founder’s shares for $605 million
The firm admitted these failures, as well as the deficiency in commercial data known as blue sheets. The regulator also found that Robinhood did not adequately address cybersecurity risks.
Lucas Moskowitz, general counsel at Robinhood, said the company is pleased to have resolved these issues.
“We are well positioned to continue leading the industry in developing innovative products and services that our customers want and need,” he said in a statement. “We look forward to working with the SEC under a new administration.”
With information from Reuters
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