Robinhood fined $45 million by SEC for multiple securities violations

PANews reported on January 14 that according to an announcement issued by the U.S. Securities and Exchange Commission (SEC), Robinhood Securities LLC and Robinhood Financial LLC agreed to pay a total of $45 million in civil penalties for violating more than 10 securities laws. The violations included failure to submit timely suspicious activity reports, failure to implement adequate identity theft protection measures, failure to address known cybersecurity vulnerabilities, and failure to properly maintain records of customer communications. Additionally, Robinhood Securities was separately cited for failing to provide complete securities trading data and failing to comply with Reg SHO rules. These issues occurred between 2019 and 2023. The SEC said the two companies had acknowledged some of the findings and agreed to accept penalties.